deliver outstanding customer service: gain and retain customers and stay ahead of the competition

Deliver Outstanding CustomerService

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Understanding Financial AccountsUnderstand the basics of accountancy from book-keeping to VAT

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DeliverOutstanding

Customer ServiceGain and retain customers and stay

ahead of the competition

SUSAN NASH and DEREK NASH

2nd edition

Originally published in 2000 asExceeding Customer Expectations

Published in 2002 byHow To Books Ltd, 3 Newtec Place,Magdalen Road, Oxford OX4 1RE, United KingdomTel: (01865) 793806 Fax: (01865) 248780

All rights reserved. No part of this work may be reproducedor stored in an information retrieval system (other than forpurposes of review), without the express permission of thepublisher in writing.

© Copyright 2002 Susan Nash and Derek Nash

British Library Cataloguing in Publication DataA catalogue record for this book is available fromthe British Library

Edited by Diana BruetonCover design by Baseline Arts Ltd., Oxford

Produced for How To Books by Deer Park ProductionsTypeset by Anneset, Weston-super-Mare, SomersetPrinted and bound in Great Britain

NOTE: The material contained in this book is set out in goodfaith for general guidance and no liability can be acceptedfor loss or expense incurred as a result of relying in particularcircumstances on statements made in the book. The laws andregulations are complex and liable to change, and readers shouldcheck the current position with the relevant authorities beforemaking personal arrangements.

List of illustrations ix

Preface xi

1 Understanding customer service 1Customer service quiz 1

Customer service quiz answers 2

Factors that make us satisfied or dissatisfied 6

Material and personal service 7

Research on material and personal service 9

Internal and external service 11

Service pyramid 12

Moments of truth 15

Service summarised 16

Case studies 18

Discussion points 19

Summary 20

2 Delivering Outstanding customer service 21Service management model 21

Company profile 24

Where are you now? 29

Service cycle 33

Case studies 37


Summary 41

3 Customer service strategy 42The company vision statement 43

The company mission statement 44

SWOT analysis 45

Customer service strategy 47

Customer service slogan 47

Defining our customer service values 49

Contents

Customer service as a key result area 51

Communicating the strategy 54

Case studies 55


Summary 64

4 Hiring the right people 66Hiring or training customer service skills 66

Managing the recruitment process 67

The interview process 76

Case studies 89


Summary 94

5 Developing personal service skills 96What is communication? 96

The communication process 99

Complexity of the process 100

Sending the message 103

Three styles of communication 111

Case studies 112


Summary 118

6 Managing the customer interaction 119Managing interaction and building communication

with the customer 119

Adapting to the customer’s style 127

Moments of truth 134

Case studies 136


Summary 140

7 Implementing effective processes 141Service objectives and standards 141

Establishing service objectives 142

Defining service standards 146

Defining the customer cycle 146

Defining systems required 148

Service level agreements (SLAs) 149

vi Deliver Outstanding Customer Service

Case studies 154


Summary 163

8 Dealing with customer complaints 165Seeking customer complaints 165

Defining recovery 166

You said what? 167

The CLEAR technique 168

Implementing the CLEAR technique 182

Case studies 184


Summary 186

9 Instituting continuous improvement processes 187Long-term process improvements 187

Customer service task forces 190

Updating SLAs 190

Re-engineering service delivery 192

Case studies 192


Summary 198

10 Helping managers become leaders 199Defining leadership 199

Achieve the objectives: focus on results 202

Develop the individual 203

Individual coaching principles 206

Motivating individuals 208

Building the team 209

Recognising achievements 212

Celebrating success 212

Case studies 213


Summary 218

11 Delighting the customer 220

Further reading 223

Index 225

Contents vii

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1 The service pyramid 132 The service management model 223 Research checklist 314 Strategic planning pyramid 425 List of characteristics/job dimensions 716 Questions for each job requirement category 777 Sample competencies identification checklist 908 Sample questions for hiring customer service focused staff 919 Interview evaluation form 92

10 Part of a job requirements checklist 9211 Sample curriculum for customer service training 11312 Sample curriculum for technical training 11513 Sample training agenda 11714 Characteristics of the different temperaments 13015 How the different temperaments communicate 13216 Sample: setting standards 15517 Defining service delivery performance standards 16018 Reasoning and emotions graph 17019 Problem-solving questions and guidelines 18920 Sample problem-solving steps 19321 How leaders drive customer service improvements 20122 The different types of feedback 20423 Giving and receiving feedback 20524 Guidelines to giving feedback 20725 Sample curriculum: turning managers into leaders 214

List of illustrations

You have the best-quality, feature-rich product on the market,you have hired top talent from across the industry, and yet yourcompany is not performing as it should. Why?

Maybe customer needs are not being met, or the customer

does not feel valued. You may have forgotten that often the

critical competitive edge in becoming a market leader is reached

by exceeding customers’ expectations. As business enters the

21st century, customer service remains a fundamental factor for

business success and profitability.

The reasons for this are many, but we will focus on two. First,

customers’ expectations have risen: ‘mass class’ prevails where

more goods and services are available, to more people, for less

cost than ever before. Second, customers have fewer

opportunities to receive personal service than even ten years

ago: witness the automated tellers, the decline of home delivery,

the growth of internet malls, etc. So when the customer has an

opportunity to receive service from an organisation, they often

have a pent-up need for human interaction.

The combination of these two factors makes delivering

exceptional service as important today as ever before. As a

result, some organisations leap on the customer service

bandwagon. They produce fancy slogans, offer incentives and

train their people, often to no avail. Why? Because exceeding

customers’ expectations involves company-wide change that

needs constant reinforcement and effort. It requires a consistent

process of efforts – it is not an event.

Who should read this book?

This book is designed for anyone who is working within an

organisation, whether small or large, who wants to improve

standards of service to the customer. Whether you are a

business owner, manager, service provider or executive, this

Service provides the

hiddencompetitive

edge

Preface

xii Preface

book will provide useful tools and techniques to improve

service at all levels in your organisation.

What is the purpose of this book?

The purpose of this book is to provide a methodology to

systematically improve the service provided to customers so

that customer expectations can be exceeded and your business

can remain viable.

Using this book

In this book we introduce a service management model with

specific tools and techniques within each section:

In Chapters 1 and 2 we define customer service in some

depth, and describe a comprehensive approach to improving it.

Based on your own assessment of your needs, you then choose

which chapters to tackle next.

In Chapters 3 to 10 you will be given information, skills and

techniques to raise your competency in specific areas where you

may need help. Each chapter includes examples, exercises, case

studies and discussion points to enable you to directly apply the

principles introduced to help improve service to your

customers. Embedded in each chapter are ideas for ‘keeping the

fires alive’: many organisations make a great start, only to lose

momentum and focus, resulting in service deteriorating,

employees becoming disillusioned (more ‘smile’ training) and

customers becoming dissatisfied.

The outcome of implementing these ideas can be creating

situations where you are able to delight the customer: to

provide a service that far exceeds the customers’ expectations.

These situations become the stories that act as free PR and

build a company’s reputation. We will close the book by sharing

a few of these stories, to highlight what you can expect to see

when the entire customer service strategy comes to fruition.

The contents of this book were developed after many years of

working with a broad range of organisations as they struggled

to make delivering outstanding customer service a fact and not

a fantasy. Good luck in this journey!

hile most of us deal with customer service every day, either

as a customer or as a service provider, many of us do not

necessarily understand what constitutes good customer service. To

a certain extent we are not aware of the factors that make us

satisfied or dissatisfied. In this chapter we will lay the groundwork

for the rest of the book by identifying some misconceptions about

the critical components of a positive service interaction, and then

by thoroughly defining customer service.

Customer service quizTo raise awareness and to set the scene for the rest of this chapter,

take a moment and answer the following questions. For each

question, circle the answer you think is correct. Circle only one

answer for each question. Think about customer service in

general, for instance in banks, restaurants, retail stores, etc, not

necessarily the context in which you provide customer service.

1. What is the biggest single reason why businesses lose

customers?

a new competition

b indifference of one employee

c word of mouth

d dissatisfaction with the product.

2. What percent of dissatisfied customers do not complain to you

about discourteous or indifferent customer service?

a 48%

b 65%

c 78%

d 96%.

Many of us don’tcomprehend the

criticalcomponents of a

positive customerservice

interaction

CHAPTER 1

Understanding Customer Service

W

3. Of those customers who do complain, what percent is likely to

return to that business again?

a 50%

b 70%

c 80%

d 90%.

4. For the average business, what percent of annual sales comes

from existing satisfied customers?

a 30%

b 10%

c 65%

d 50%.

5. How much more money does it take to find a new customer

instead of getting more business from an existing one?

a twice as much

b three times as much

c four times as much

d over five times as much.

6. A dissatisfied customer will tell how many people, outside of

the company, about poor service received?

a two or three people

b four to six people

c seven to eight people

d over nine people, but as many as 20.

Customer service quiz answers1. b

2. d

3. d

4. c

5. d

6. d(Gathered from TARP research conducted by the White House Office ofConsumer Affairs and quoted in How to Win Customers and Keep Them forLife by Michael Le Boeuf.)

2 Deliver Outstanding Customer Service

Why customers leave (question 1)

The biggest single reason why businesses lose customers is:

◆ Indifference of one employee – 68 per cent.

Other reasons customers choose to take their business elsewhere are:

◆ Dissatisfaction with the product – 14 per cent.

◆ New competition – 9 per cent.

◆ Word of mouth – 5 per cent.

This research was based on answers from customers who were

asked: ‘What was the factor that influenced your decision not to

use this product or service again?’ At the point of interaction

between the customer and the service provider, the indifference of

one employee was cited as the major reason customers chose to

take their business elsewhere.

Obviously, businesses have to offer a comparable, competitive

product that is technically adequate in order to ensure the long-

term viability of the organisation. Amdahl was renowned for

providing exceptional customer service, but was unable to change

its approach from being a mainframe supplier to supplying a

product geared towards the distributed environment. Many

responsible for providing customer service question this data, as

they believe product quality is the deciding influence. Later in this

chapter, that is one myth we will dispel.

Who complains (question 2)?

Ninety-six per cent of dissatisfied customers do not complain to

you about discourteous or indifferent customer service: we only

hear from 4 per cent of our dissatisfied customers. This means

that for every complaint received, there are in fact 26 other

customers with problems, six of which are serious issues.

The rest either vote with their feet, and do not return, or

complain to anyone else outside the company who will listen.

Every individual within a company can make a significant

impact, not only on the customer experience, but also on the

company’s service reputation in the marketplace.

Understanding Customer Service 3

Only when we know about the problems will we be able to resolve

them. The concept of providing our customers with the tools they

can use to complain, and recovering from the complaint, is

covered in later chapters.

After complaining, who returns (question 3)?

Of those customers who do complain, what percent is likely to

return to that business again? Interestingly enough complainers

are more likely than non-complainers to do business with the

company that upset them, even if the problem is not satisfactorily

resolved. However, this question has two correct answers. If the

complaint is not handled effectively, only 50 per cent of customers

will do business with that organisation again. When British

Airways conducted their initial market research into customer

perceptions, it showed that when the service delivery was

acceptable, the customers were satisfied. However, when a

problem occurred only 50 per cent of the customers would return

to the airline, based on the fact that their complaint was not

resolved to their satisfaction. They termed this process of

successfully resolving customer complaints as ‘recovery’. If the

complaint was resolved quickly and successfully, over 95 per cent

of customers would return. Effective recovery is an incredibly

important service management tool.

The successful resolution of complaints is such a novel experience,

that achieving results in this area can drastically impact customer

loyalty. Chapter 7 will discuss strategies for recovery in more detail.

Service and sales (question 4)

The most conservative data infers that over 65 per cent of annual

sales comes from existing satisfied customers. The figures are even

When customers complain, they are doing so because they care

and want to continue to do business with the organisation.

In order to deliver exceptional service, we have to create the

means for customers to complain to us.



higher in some service businesses and when adding the factor of

referrals.

Consulting firms often get most of their business this way.

Cost of generating new business (question 5)

Research in this area has produced different results.

Despite this data, companies continue to invest large amounts of

promotional money to encourage new customers to try their

service or product, and then ruin the experience at the service

delivery point! If a problem arises, customers are often turned over

to a ‘customer service department’ that does not have the authority

to correct the problem. An alternative strategy would be to invest

the money used for promotion to improve the overall service

delivery process – a more economical and long-term option.

Spreading the word (question 6)

The ‘average’ customer who has a problem tells nine to ten people

about it. Approximately 13 per cent of unsatisfied customers will

tell more than 20 people, personally, about the problem. Of the

people they tell, each one will on average tell two to three more

people. This means that usually 200–300 people personally hear

about every negative service experience. A scary thought,

particularly when you combine the effect of the Internet where

potentially 100 million people could read about the same customer

service horror story!

Conversely good news does not travel as fast as bad news. On

average, a satisfied customer will only tell three to five people

about the experience.

Estimates show that it costs five to ten times as much to

generate business from new customers as it does to get more

business from existing customers.

Some businesses receive almost 100 per cent of their new

business from existing satisfied customers and the referrals

they make to others.

Conclusions

Of the six questions, how many did you answer correctly? In our

research we have found that, on average, most people answer

between three and four questions accurately.

From this you can see that most of us need to broaden our

understanding of customer service. Let’s begin to define customer

service in more detail.

Factors that make us satisfied or dissatisfied

What constitutes positive or negative customer service?

Hotels are renowned for confusing bookings. When travelling

recently, the room key I was given wouldn’t work because

someone else was already in the room. When I went back to

reception the response I was given was ‘the system made a

mistake!’ The factors that made me dissatisfied with that

experience were:

◆ no ownership of the problem

◆ no apology

◆ blaming of the mistake onto someone/thing else

◆ no resolution of the problem

◆ couldn’t-care-less attitude.

Exercise Think of your own experiences as a customer, in retail,

restaurants, hotels, travel, etc. Think of a specific time when you

were dissatisfied with the service you received. How did you feel?

What factors contributed to your dissatisfaction? Try to separate

the experience itself from the factors that caused you to feel the

service did not meet your expectations. List the factors associated

with your negative experience.

On another visit to a hotel in Denver, my room reservation was

once again confused, but with a twist. This time, someone else was

given a key to the room I was in! A poor, tired business executive

walked into the room and found an undressed woman cleaning

You have to deliver much more good service to outweigh the

possible negative consequences of bad service.


her teeth. He exited the room much quicker than he entered!

Thirty seconds later there was another knock at the door. The

front desk manager had come up to personally apologise for the

mistake and to reassure me that it would not happen again. In

addition, the following evening there was a personal note from the

front desk manager apologising for the disturbance accompanied

by a bottle of wine and a basket of cheese and crackers.

The factors that made this a satisfactory experience were:

◆ ownership of the problem

◆ apology

◆ exceeding expectations – free wine!

◆ personalised service

◆ speed of response

◆ positive attitude

◆ no blaming of systems.

Now think of a specific time when you were satisfied with the

service you received. The experience could be in retail, restaurants,

hotels, travel, etc. How did you feel? What factors contributed to

your satisfaction? Try to separate the experience itself from the

factors that caused you to feel the service exceeded your

expectations. List the factors that contributed to your satisfaction.

We will return to these ideas when we have described in more

detail the two types of service.

Material and personal serviceThere are two types of service: material and personal.

Material service, or the content part of service, consists of price,

timing, quality and quantity of:

◆ equipment

◆ products

◆ physical comfort

◆ delivery

◆ procedures

◆ routines

◆ staffing

◆ information

◆ definition of roles and responsibilities.


Material service relates to the tangible parts of the service

delivery process. For airlines it comprises the size and age of

planes, food, baggage handling, booking systems, etc. For retail

organisations the material service comprises the storefront,

display cases, inventory, cash registers, product information, etc.

For hotels, the material service comprises the bedrooms, the

bathroom facilities, the storage space, the equipment provided, the

telephone service, etc.

Exercise If you are in the service delivery business, what are the material

service aspects of your product?

Personal service consists of the interpersonal aspects in providing

service, which include:

◆ body language

◆ verbal communication

◆ using the customer’s name

◆ giving your undivided attention

◆ showing respect for the individual

◆ being calm and confident.

Personal service relates to the intangible aspects of providing

your product or service. These are harder to measure, control and

manage because they take place at the moment of the interaction,

cannot be standardised and vary from one moment to another –

personal service is situational. What is acceptable to one customer

one day may be unacceptable to the same customer on another

day, because of differing circumstances.

For airlines the personal service comprises the greeting, the way

the check-in staff interact with the customer, the amount of eye

contact, etc. For retail organisations the personal service

comprises the effectiveness of the sales person in establishing

rapport, identifying customer needs, suggesting appropriate

products and describing them in customer-friendly terms, etc. For

hotels, the personal service comprises such things as the

friendliness of the check-in, the ability of the staff to answer

questions about the hotel and its facilities, the ability to respond

to non-standard questions, etc.


Exercise If you are in the service delivery business, what are the personal

service aspects of your product?

Research on material and personal serviceMaterial service is the easiest to define, measure and compare.

When complaints are received or market research conducted, it is

more likely that the easily defined points of material service will

be commented on. When Jan Carlzon, the Chief Executive Officer

of Scandinavian Airlines (SAS) took over SAS in 1981, the airline

was not popular with airline travellers. He conducted market

research and found that customers said they wanted the material

service of the airline to be improved – bigger planes, more

legroom, quicker baggage handling and better food. At the same

time he came across in a library, research conducted in the US.

The library example: first group

To conduct research two groups were used. For the first group the

librarian was told that she was in the book-stamping business, not

to be rude but to move the customers through the check-out

quickly and efficiently. These customers were interviewed when

they left the library. Initially somewhat reluctant to be

interviewed, their comments on the service they had received

included:

◆ The library was dark.

◆ It was hard to find the books.

◆ The library was unwelcoming.

◆ Overall they were dissatisfied with the service experience.

◆ No one mentioned the librarian.

The library example: second group

For the second group, the librarian was told to do three things:

1 Use the customer’s name (it was on the card, so not a

complicated request).

2 Smile (they were told to not be effusive but since it uses more

muscles than a frown it’s good exercise).

3 Touch the customer’s hand as he/she passed the book back


(due to increased sensitivity to sexual harassment, we only

recommend using the first two).

These customers were also interviewed as they left the library.

This group seemed more willing to be interviewed and made the

following comments on the service they had received:

◆ The library was warm.

◆ The filing system was easy to understand.

◆ The lighting and ventilation was good.

◆ Overall they were satisfied with the service experience.

◆ No one mentioned the librarian.

The library example: conclusions

Although the customers commented on the material aspects of

the service, the differentiating factor, and the only thing that had

changed, was the personal service the customers had received.

When Jan Carlzon heard about this research, he decided instead

of initially investing in new aeroplanes, better food, etc (the

material aspects), to invest in training the people in the airline on

how to provide personalised service to each customer. He invested

in a two-day programme called Personal Service through Personal

Development that was offered to all his 12,000 employees. The

results, as they say, are history. Passengers started to comment on

the improvement in flying SAS, and the consequent increase in

credibility and passenger flow enabled Jan Carlzon to invest in

some of the more important material aspects of service. This

approach was then adopted by British Airways, who also

implemented this ‘wall-to-wall’ training that we will discuss in a

later chapter.

Exercise Revisit the factors that made you satisfied and dissatisfied. Go

back to the lists of factors that made you satisfied and those that

made you dissatisfied. Mark the factors that represent personal

service with a P and material service with an M. Some factors,

such as lack of product information, could be a combination of

both personal and material factors. Review the list and identify

which factors appear most often – personal or material. Most lists

have more personal than material service factors.


Material and personal service

To summarise, if material service is up to standard it has, at best, a

neutral effect on the customer. In planning their service policies,

most companies focus on the material aspect. In the training of

personnel it is frequently the working method, technical

competence and routine that are accentuated. The personal aspect

is often overlooked.

When you think of restaurants where you like to eat or hotels

where you like to stay it’s often the personal service that provides

the greater reason for you to return.

If a customer receives satisfactory material service, but poor

personal service, the service is often described as bad or

unsatisfactory. If a customer receives poor material service, but

excellent personal service the service is often perceived as good or

satisfactory.

As we move on to deciding how to deliver oustanding customer

sevice, it is important to ensure that material service processes and

procedures are adequate and not preventing service providers

from meeting customer needs. However, a greater emphasis will

be placed on how to establish and ensure consistent personal

service – the factor that makes or breaks the customer’s

perception of the service delivered.

Internal and external serviceToo frequently we think of customer service as an external

activity: something that occurs outside the organisation to keep

paying customers happy. But internal customer service is equally

important. Serving the people we work with, and doing

everything we can to help them do their job well, is critical to the

organisation’s success.

Internal customer service

Internal customer service means treating your colleagues as if they

were your paying customers. It means delivering competent,

Personal service is a key element that contributes to customer

satisfaction and long-term customer loyalty.


quality work in a courteous and helpful manner. It’s doing

something extra for your colleagues: taking that extra time or

expending that extra energy.

We’re all internal customers. We depend on each other for

ideas, services and materials. We all have customers and we are all

customers. Internal customer service is the same as external

customer service; it just applies to the people within the company

rather than outside it.

Good internal service is important because:

◆ Internal customer service instils a spirit of cooperation and

teamwork in your organisation. Everyone feels this is a great

place to work.

◆ Internal customer service helps everyone produce top-quality

work . . . on time and within budget.

◆ Internal customer service will help your company, and you, to

grow.

◆ Internal customer service helps you feel better about your job.

You’ll enjoy what you do even more.

The relationship between good internal and external customerservice

Working together, people and departments, is what good internal

customer service is about. And when you treat your colleagues as

you would like to be treated, and they do the same in return, you

reach your full potential and so does the organisation.

Your external customers are only satisfied with the best service

and/or product. It’s only by working together internally that the

best can be achieved. External customer service often mirrors

internal customer service.

Service pyramidService delivery requires an alternative organisational structure

based on an inverted pyramid, with three levels: service providers,

service support and management.

– Service providers who have direct interaction with the

customer.

– Service support personnel who provide important internal

services so that service providers can meet customer needs.


– Management/leaders who are there to provide vital support for

the service initiative.

Let’s look at a situation in technical support, where the

customer wants their product/application repaired.

Service providers

There are several departments that have direct interaction with

the customer. The employees who work in these departments are

called service providers and include:

◆ Those who answer the phone – first-level support.

◆ Those who initially try to fix the problem – second-level

support.

◆ Those to whom the problem is sent if it can’t be fixed – third-

level support.

◆ Managers who may get involved when a customer is irate.

◆ Sales personnel who told the customer that the product would

meet their needs.


Moments of truth

Sales

Finance Engineering

Marketing

Executive team

V.P.s

CUSTOMER SERVICE

QAMANUFACTURING

Managers

Service providers

Service support

Leadership

Fig. 1. The service pyramid.

Service support

There are many departments within organisations that service

providers depend on to meet customer needs. These functional

areas are called service support. Some are obvious, and some are

more subtle in their contribution to customer satisfaction. The

less obvious ones include:

◆ Engineers dedicated to providing more advanced support to

customers and software code fixes.

◆ Engineers in development.

◆ Quality assurance to ensure products don’t have bugs in the

first place.

◆ Purchasing to ensure there are materials to construct the

product.

◆ Finance to ensure there is adequate cash flow.

◆ Human resources to ensure people are hired who can design

the product.

◆ Shipping to ensure the product reaches the customer.

The list goes on and on and any of these departments can

negatively influence customer service. Yet often these groups do

not perceive themselves to be in the role of service provider, or

may be on the receiving end of conflicting priorities (your job is

to get out new products, not just fix existing products). To

consistently deliver outstanding customer service everyone in the

organisation needs to be focused on the customer. Chapter 7

will describe how service level agreements are a tool to ensure

internal customers are committed to meeting external customer

needs.

Managers/leaders

The final component of delivering exceptional service is provided

by support from senior management. Contrary to traditional

organisation charts, managers, directors, vice presidents and

presidents are there to support the service delivery process. If they

don’t ‘walk the walk’, customer service can’t be anything other

than a buzzword. Often after managers review the service delivery

methodology presented in Chapter 2 they realise that it is a

difficult process and don’t want to make the commitment

required to institute a customer service culture. As a result


customer service becomes a platitude, not a strategy, and therefore

will not succeed.

Exercise Who is responsible for helping the customer? Select a specific

customer service transaction that has taken place with your

company. Begin with the outcome and then trace the transaction

back through the company to identify which are service providers,

which are required to support the service and the role of

managers in interactions with the customers, using the following

categories:

◆ brief description of the situation

◆ service providers

◆ service support

◆ managers.

Think about the extent to which each department is focused on

meeting customer needs. What internal barriers exist that might

prevent service providers from delivering oustanding customer

service?

Moments of truthThe phrase moments of truth represents a powerful idea for

helping people in service businesses shift their point of view and

think about the customer’s experience. A moment of truth

represents the critical interaction a customer has with an

organisation. Jan Carlzon used the phrase to great effect when he

described the airline as having 50,000 moments of truth every day.

Managing service means managing the moments of truth, so as

many as possible turn out positively.

Some moments of truth are created by systems – no map given of

a hotel layout at check in. Some moments of truth are created by

interaction with personnel from the company: asking a question

and receiving a complete and thorough answer.

A moment of truth is any point in the interaction during

which the customer has an opportunity to gain an impression

of the service provided by the company.


Every moment of truth is not created equal; some have a

stronger ability to influence the customer’s perception of the

service. For instance, if the customer is irate and the problem is

resolved to their satisfaction, this moment of truth will be given

greater weight by the customer in describing the service

experience. Unexpected positive moments of truth will also

influence the customer’s perception of the service – being greeted

with a smile walking through hotel corridors by a hotel employee,

the use of their name when leaving a restaurant.

The examples of poor customer service you listed in the

exercise earlier in this chapter represent dull moments of truth.

These are those critical interactions that leave the customer feeling

negative, disappointed, unpleasantly surprised and therefore

dissatisfied with the customer service.

The examples of good customer service represent shining

moments of truth. These are those critical interactions that leave

the customer feeling positive, enthusiastic, pleasantly surprised

and therefore satisfied with the customer service.

Service summarisedAs we have seen, service is more complex than simply being a task

completed by a customer service department. Service is:

◆ To a large extent, intangible: it cannot be reproduced as a

concrete object and it can vary from one moment to the

next.

◆ Situational: what is positive for one customer one day, and

meets their expectations, may be perceived differently by the

same customer on another day and fail to meet expectations.

◆ Difficult to measure: one of the ironies of customer service is

that the higher you set expectation by delivering exceptional

service, the more the customers expect the next time they deal

with you. So you may provide better service than a competitor,

but because of differing expectations the customer may be

satisfied with the competitor’s service but not with yours.

(Compare your expectations of a meal in a fast food restaurant

Research has shown that it takes, on average, 12 shining

moments of truth to compensate for one dull moment of truth.


to one in a high class hotel. A smile would be a great service

from the fast food restaurant, but you would expect

considerably more from the hotel.)

◆ Subjective: what is acceptable for one customer may be totally

unacceptable to another. Depending on people’s awareness of

service, standards will vary from one individual to another.

◆ Influenced by the service provider: if the service provider sets

expectations effectively, the customer will probably be satisfied.

If the service provider sets expectations ineffectively and fails

to meet them, the customer will probably not be satisfied. For

instance, if you tell the customer you will call at 3 pm and you

call at 5 pm, you have not met customer expectations. If you

tell the customer you will call the next day, and you call at 5

pm the same day, you have just exceeded the expectations. The

same action, but with a differing set of expectations, produces

a different level of customer satisfaction.

◆ A component in every product a company makes and

distributes: there are no companies that just produce products.

Even an organisation such as Amazon.com that sells books

over the Internet has service components: a ‘thank you’ e-mail

after an order is placed, a reminder about new releases

proactively sent, etc.

◆ Not just in industries categorised within certain SEC codes:

there is a service component in every customer offering, it just

depends what percentage is tangible product and what

percentage is service.

◆ Not provided by a customer service department alone. In the

next chapter we will introduce a model, based on this

definition of service, for improving service delivery. First,

however, let’s meet the three companies we will be studying as

they implement a customer service improvement strategy in

order to try to consistently exceed customer expectations.

Don’t over-promise and under-deliver. Make sure you under-

promise and over-deliver.


Case Studies: Who is Cleanworks?

Cleanworks is not even a real company yet – it is a concept that comes to fruition

and becomes an organisation by the end of the book.

The concept of Cleanworks arose from market research undertaken by a

major soap manufacturer and distributor. With a stable market and shrinking

margins, the company wished to diversify from its core business into new,

possibly more lucrative service opportunities. It created a department whose

charter was to identify potential new openings that would capitalise on the

organisation’s strengths, yet would provide greater growth and long-term profit

potential.

Research focused on the company’s core market and spread into the laundry

and dry cleaning market. This market was not only highly diversified, with no

major national or international organisations, but also filled with dissatisfied

customers and poor service levels. Combined with this, research indicated that

people were struggling with too much to do in too little time, and were therefore

gravitating even more towards service businesses to create more leisure time. The

advent of ‘mass class’ was indicated by the growth of such companies as

Starbucks, John Lewis Partnership, Home Depot, Pottery Barn, etc. Mass class is

the making available of better quality products to a wider audience through

standard delivery channels. Cleanworks was identified as a possible laundry and

dry cleaning business that would undertake home delivery, thereby providing

people with more time. They would also provide exemplary service, and capitalise

on economies of scale to standardise this highly diverse market. The company

decided initially that it would build a plant and the business from scratch, rather

than trying to change the culture of an acquired company.

Case Study: Who is Kitchen Barn?

Kitchen Barn is a division of a large, national speciality retailer who currently uses

two distribution channels: mail order and retail stores. Kitchen Barn has been one

of four divisions of its parent company ever since it was purchased in 1988. In

the past year there has been a push to reposition Kitchen Barn in a different

market niche, as a more up-scale retailer, with larger stores and higher-priced

merchandise, including furniture. The parent organisation has always had a

reputation for providing good customer service, but the new direction and

increased competition in the marketplace have combined to raise awareness to

focus on delivering outstanding customer service. We will follow this organisation

as it ‘restarts’ its customer focus campaign.


Case Study: Who is Internet Express?

Internet Express is a software company providing services on the web. The

company was created by the merger of two larger organisations two years ago,

and since then has grown to its current size by acquiring five more companies. As

a result there was not one unifying culture, but a combination of several different

ones. Network Logic had a slower-paced, customer-focused approach, but this

had resulted in a long product development cycle and a loss of market status.

MacDonald software had a more ‘get out and make it happen’ culture, with

shorter product development cycles and less focus on customer loyalty. Neither

culture respected or valued what the other brought to the table. The

combination of these two diverse cultures, with the often-hostile cultures of the

companies that were taken over, resulted in a somewhat unproductive work

environment, and as a result spotty customer service. In this case study we will

follow the Vice President of Technical Support as he integrates several different

technical support structures and tries to raise overall service levels to the

customer.______________________________________________________________

Discussion points1. Based on the factors that made you satisfied or dissatisfied as a

customer, what influence did material and personal service

have on you? Are you more product-focused or relationship-

focused?

2. To what extent have you defined the material and personal

service you provide to your external customers? What are the

most important facets of your material service? How well do

you provide exceptional personal service?

3. How positive are the interactions between the differing

departments in your company? What internal barriers exist

that might affect customer service levels? Which departments

appear customer-focused and which appear product-focused?

4. To what extent is the customer focus reflected throughout your

company? How traditional is your organisation structure? To

what extent do those in the service support functions view

customer service as part of their responsibility?

5. What do you think are the most important moments of truth

that your team, group, company faces every day?

6. What percentage of your business is concrete, tangible,

product-based, and what percentage is service-based?


SummaryIn this chapter you have been given a comprehensive definition of

customer service that will act as a building block for the rest of the book.

You learned the following about customer service:

◆ From completing the customer service quiz, you probably

realised you don’t know as much about customer service as

you might have thought.

◆ There are two types of service:

– Material, relating to the content part of the service delivery

process.

– Personal, relating to the interpersonal aspects of serving the

customer.

◆ The way the employees treat each other internally (internal

customer service) is important for providing exceptional

service to external customers. The inverted service delivery

pyramid provides a model for how this approach can be

implemented and understood within organisations.

◆ To deliver outstanding customer service you need to optimise

as many ‘moments of truth’ as possible with customers.

Moments of truth represent the critical point where the

organisation and its people interact with the customer; the

moments can be small (how the customer is greeted) or large

(completing a major project).

◆ In addition we realised that customer service is intangible,

subjective, situational, and can be influenced by the service

provider and every organisation provides some elements of

service in its product mix.

◆ In short, consistently delivering outstanding customer service

relies upon a complex company-wide approach, rather than

trying to establish or improve a customer service department.


s we saw in the previous chapter, many of us have an unclear

understanding of what customer service really is. It’s not

surprising, therefore, that when organisations try to raise

customer service levels many of their efforts appear unsuccessful.

In this chapter we will provide a service management model to

show what is required to consistently deliver outstanding

customer service. We will also take some time to show how to

evaluate current customer service levels. It’s hard to improve if you

don’t know from whence you started! Finally we will revisit our

case studies to show how each company established its service

management approach and prioritised its plan of attack.

Service management modelIn order to effectively manage moments of truth, applying a

service management model is essential. Based on the model

originally developed for British Airways and incorporating a

continuous improvement philosophy, the process defines critical

activities necessary to ensure consistent excellent service delivery

in five specific areas:

1. Establishing a clear customer service strategy.

2. Ensuring the correct people are in place, with the correct skills

to deliver outstanding personal service.

3. Establishing clear material service delivery processes.

4. Improving continuously in terms of process improvement,

quality monitoring and recovery.

5. Management playing a key daily part in acting as role models

for the delivery of these principles.

By implementing certain important milestones in all five

categories it is possible to optimise the critical moments of truth

for both personal and material service in the entire service

delivery process (see Figure 2).

CHAPTER 2

Delivering Outstanding CustomerService

A

Managingmoments of

truth requires aservice

managementmodel

Establishing a customer service strategy

To establish a clear customer service strategy certain key actions

are required:

◆ understanding the overall organisational vision and mission

◆ defining the organisation’s customer service direction

◆ creating the organisation’s customer service slogan

◆ establishing the organisation’s customer service values

◆ ensuring customer service is defined as a key responsibility for

the business/department

◆ communicating the customer service standards and vision.

An outcome of this process is often a communications

programme for all staff, including but not limited to:

◆ publishing the customer service visions/standards in posters,

newsletters, badges, etc

◆ communicating the customer service vision through small

group meetings

◆ establishing an event for the entire group/company to launch


Management

Strategy Process

PeopleContinuous

Improvement

Fig. 2. The service management model.

and clarify the customer service philosophy (see psychology of

service in Chapter 5).

Hiring, training and keeping the right people

Ensuring the right people are in place, with the correct skills to

deliver outstanding personal service, requires:

◆ Hiring the right people. This is achieved by:

– defining job requirements

– using behavioural interviewing skills to evaluate against the

defined job requirements

– conducting assessment centres.

◆ Providing training in key areas required to deliver exceptional

personal service.

◆ Providing ongoing coaching and feedback on personal service

skills.

◆ Motivating employees to produce outstanding results.

Managing the material service delivery processes

This critical step involves defining, reviewing and improving

service delivery processes and procedures. This requires:

◆ Mapping the service delivery processes.

◆ Evaluating critical success points in the process.

◆ Establishing service delivery procedures to optimise material

service.

◆ Creating service level agreements.

Instituting continuous improvement processes

◆ Continuous improvement involves reinforcing and adapting

both personal and material service delivery processes on an

ongoing basis.

◆ Actions used to reinforce personal service standards are the

designing and building of follow-up tools and activities to aid

retention.

Sample approaches include:

– establishing customer focus teams

– ongoing reinforcement activities such as meetings,

newsletters, etc

Delivering Outstanding Customer Service 23

– creating reward systems

– further training.

◆ Actions used to reinforce material service standards are:

– applying problem-solving to short-term service issues

– quality management initiatives

– ongoing performance measurement

– updating service level agreements and standards.

Manager’s role

The key role in the service delivery process is played by the

management team, which is responsible for:

◆ Helping to establish the strategy.

◆ Understanding the key skills required to deliver outstanding

personal and material service.

◆ Establishing, monitoring and updating service delivery

processes.

◆ Coaching employees in personal and material service delivery

skills.

◆ Acting as an example in delivering outstanding customer

service.

We have found that managers play the critical ‘make or break’ step

in the service delivery process.

The rest of this book will concentrate on providing

information, skills and tools to be used to establish and maintain

effective service delivery processes.

Company profileBritish Airways (BA) was one of the first organisations in the UK

to successfully implement a service management model, and

though it has been discussed often, it is still one of the best

examples of making a company profitable directly by changing the

customer service approach. Unfortunately, as we can see from

current results, the company failed in the long-term to keep in

touch with its customers, and once again has to struggle to

redefine itself in relation to its business success.

The approach they took initially under Colin Marshall was as

follows.



Where were they when they started?

When Colin Marshall took over BA in 1983, the airline had been

restructured and the workforce had been reduced from over

60,000 to approximately 37,000. He decided he wanted to

differentiate BA in terms of the quality of the service provided –

he wanted BA to be the best airline in the world.

BA conducted extensive market research so that they were able

to clearly measure their starting point, before any new customer

service strategies were implemented. This customer research also

gave some clear indicators of potential areas for improvement. For

instance, in the normal run of events the customer research

indicated that BA did a good job. However, the four factors of

highest value were defined as:

◆ Care and concern on the part of public contact personnel.

◆ Adaptability of policies and procedures.

◆ Recovery – the ability to correct things that had gone wrong.

◆ Problem-solving capability of the front-line personnel.

The research revealed that when problems occurred, the airline

did not do a good job in handling them. As a result, only 50 per

cent of customers said they would fly again after a problem had

occurred. This clearly indicated a need to provide skills and process

review checks when problems occurred.

Strategy

Historically the British often confuse the words service and

servitude! The airline had a reputation for being efficient but

standoffish. Colin Marshall initiated a strategy that he named

Putting the Customer First. While most organisations use a

slogan, without the commitment behind it, it is almost impossible

to make it succeed. Colin Marshall did the opposite, making sure

he implemented all the steps in the service management model

(see page 21). Having heard about SAS, and the success of its

approach, he ensured BA emulated this methodology.

To communicate the strategy clearly to all employees his team

designed a clear identity for the campaign, issued a quarterly

Putting the Customer First newsletter and supported it with

posters, buttons and banners. In addition, he talked internally to

employees about the strategy at every opportunity. Please note

that he did not communicate externally about the initiative until

after several other steps had been taken.

People

Within a two-year time frame, BA conducted ‘wall-to-wall

training’, i.e. awareness-building seminars for all employees. The

programme was called Putting People First and was presented in

large group sessions (180 people) by Time Manager International,

the organisation that had helped Jan Carlzon at SAS. Each group

was made up of employees from different areas of the company

such as baggage handling, sales and reservations, flight crew, cabin

crew, etc. The content of the programmes was originally called

Personal Service through Personal Development and was based on

the premise that if employees feel better about themselves, they

will be better able to give personalised service.

These sessions provided a unique opportunity for the

employees from different areas to get to know each other and

reduce some of the departmental barriers between them. In

addition, the sessions ensured that the whole company heard and

understood the customer service message.

Processes

Alongside the strategy and the training, BA also changed and

upgraded many of its service delivery processes. They changed the

corporate identity to fit in with the airline’s new image.

Continuous improvement

As a result of the Putting People First events, over 100 Customer

First teams were established. These teams were made up of

volunteers from many functional groups (baggage handlers,

reservations, etc) and each team was created to improve a specific

factor to help deliver exceptional customer service. At any one

time, as many as 1,000 of the airline’s staff were involved in one of

these teams.

Market research remains a perpetual and routine process, used

to feed back more data to Customer First teams and to

management. The teams made recommendations and, as a result,

many new services and programmes were developed and offered


to customers, such as better systems for minors travelling alone,

and better retrieval of lost and found items.

After the initial Putting People First programme was completed,

BA implemented a further culture change initiative called A Day in

the Life where all staff could experience many of the functional

areas involved in running a business. Each department – baggage

handling, flight crew, sales and reservations, etc – established an

interactive display. The groups of 180 divided into smaller groups

and moved from one department to another experiencing A Day in

the Life of the airline. At the end of the day they would complete a

case study and compete with other groups to see who could run

the airline the most successfully. Programmes such as these helped

to reinforce the ongoing importance of internal service as a way of

delivering exceptional external customer service.

Management/leadership

All members of BA’s executive team supported the Customer First

strategy.

◆ Colin Marshall personally opened over 60 per cent of the more

than 200 Putting People First Programmes that were run.

◆ All the executive team participated in the programmes.

◆ A specific programme was designed for management called

Managing People First, to provide managers with the skills

they needed to coach and reinforce the customer service

techniques on an ongoing basis.

The implementation of this service model produced the following

results:

◆ BA was voted airline of the year several years in a row.

◆ Word spread rapidly about the change in service and BA was

cited in many books, producing great PR for the company.

◆ BA’s commitment to the approach proved that a large

organisation can improve its service delivery, but only if it

institutes all facets of the service management model, and

continues this process for at least two years.

◆ BA became the benchmark upon which many other companies

based their strategies. They have been repeatedly quoted and

set as an example in numerous articles and books in both the

UK and the US.


Exercise Assess your current performance against the model. Answer each

question with a number from one to ten as follows:

1= poor performance in this area

5= average performance

10= exceptional performance.

Strategy

1. To what extent is your customer service strategy clear?

2. To what extent is your customer service slogan repeated by all?

3. To what extent have you defined your customer service values?

4. To what extent have you communicated your customer service

strategy?

Overall rating:

People

1. To what extent have you defined the job requirements for

service providers?

2. To what extent do you train your people in personal service

skills?

3. To what extent do you measure personal service standards?

4. To what extent do you reward exceptional personal service?

Overall rating:

Processes

1. To what extent have you defined your material service

processes?

2. To what extent do you measure your current performance?

3. To what extent do you define internal service interactions?

4. To what extent have you established service level agreements?

Overall rating


1. To what extent have you made it easy for customers to

complain?

2. To what extent do you train people to handle complaints?


3. How effective are you at solving the problem as it happens?

4. How effective are you in looking for the root cause and

changing processes as a result of customer complaints?

Overall rating:

Managers

1. To what extent are your managers directing the team rather

than leading?

2. To what extent do your managers see customer service as part

of their job?

3. To what extent do managers coach their staff on personal

service skills?

4. To what extent do managers interact with customers?

Overall rating:

How did your team rate? Which area do you think needs the most

work? Depending on the results of this assessment, you may

choose to review Chapters 3 to 10 in terms of your priorities

rather than follow the sequence of this book.

Chapter 3: Strategy

Chapter 4: People, hiring

Chapter 5: People, personal service skills

Chapter 6: People, managing the customer interaction

Chapter 7: Processes, setting standards and service level

agreements

Chapter 8: Processes, dealing with customer complaints

Chapter 9: Continuous improvement processes

Chapter 10: Management/leadership, coaching and motivating

employees.

Where are you now?Before an organisation can begin a customer service improvement

strategy (unless it’s a new company with no history), it’s

important to identify the current standards in terms of strategy,

personal and material service and continuous improvement.

The benefits of defining where you are now include:

◆ Having a clear starting point in your customer service

improvement campaign.


◆ Being able to measure progress as you institute different

approaches.

◆ Benchmarking your group/function with other similar

organisations and groups.

◆ Gathering more specific data about what the customer actually

wants from your company/product/service.

There are several ways to assess the current levels of customer

service you are providing (see Figure 3).

◆ customer service questionnaires

◆ telephone interviews with customers

◆ focus groups

◆ face-to-face interviews

◆ on-line research.

Companies can choose to conduct the research themselves,

which has several advantages and disadvantages:

Advantages:

◆ The company has complete access to all data.

◆ It provides an opportunity to build customer relationships.

Disadvantages:

◆ Designing market research requires specialised expertise.

◆ Conducting market research is time-consuming.

◆ There will not be a neutral perspective.

Conversely, using outside companies can have several

advantages and disadvantages:

Advantages:

◆ The company gets a neutral third-party perspective.

◆ It is less time-consuming for the company.

◆ An outside provider has existing expertise in designing survey

instruments.

Disadvantages:

◆ The consulting organisation may not completely understand

your product/service and the information you require.

◆ You lose the opportunity to communicate directly with your

customers.



Type of Research Characteristics To consider

Customer service • Sent to small groups of • There may not be muchsurveys/ customers opportunity to receivequestionnaires • Customers are selected individual comments

on demographic data, • Many customers can bebuying patterns, surveyedgeographical area, etc • Response rate can be

• Easily summarised low: fewer than 5 per cent• Normally quantitative of customers may

data complete the survey

Telephone • A structured • The benefits of thisinterviews questionnaire is normally prepared approach are that there is more

• Customers are selected opportunity to collect individualusing specific criteria, as remarkswith written surveys • Can be time-consuming

• Data is summarised • Fewer people can beinterviewed

Focus • Customers are selected • Rich qualitative feedbackgroups according to pre-screening • Fewer people can be

criteria interviewed• Groups of customers are • Time-consuming

interviewed togetherusing a structuredquestionnaire

Face-to-face • Again, the information • Rich qualitativeinterviews required for market feedback

research is decided • Time-consuming• Individuals conducting • Can be hard to ensure

the research meet the people meet thecustomers one-on-one, profile you are lookingeither in a prepared forinterview, or at the placewhere the service isprovided

On-line • Web-based community • Very cost-effectiveresearch sites are beginning to • Less time-consuming

offer corporate services than face-to-faceto conduct on-line interviewsresearch • Good qualitative

• Specific groups are researchtargeted, and the time for • Complete transcripts arethe on-line research is then availablepublicised by the client • Can be used by theand the community site service company to buildprovider customer loyalty

• On-line mediatorsfacilitate the session

Fig. 3 Research checklist.

Companies that can help you conduct customer research

include market research organisations, independent consulting

firms, firms that focus on specific market segments (eg Datapro in

technical support centre environments) and many new web

community site providers such as Talk City.

Specific examples of the differing forms of market research are:

◆ Customer service questionnaires:

– to customers to evaluate their service experience, such as

Datapro.

– conducting internal attitude surveys to assess employee

satisfaction.

– using customer feedback forms.

◆ Telephone interviews with customers, such as a garage calling

after a car has been serviced. This could be internally or

externally implemented.

◆ Focus groups: companies using brainstorming sessions with

customers to evaluate new product ideas.

◆ Face-to-face research:

– talking to new employees who might have a fresh outlook.

– using secret shopper services (for retail environments).

◆ On-line research: facilitating a chat about specific products.

Exercise Decide your approach to conducting customer research. Think

about the different ways of surveying customers that we have

discussed:

◆ customer service questionnaires

◆ telephone interviews

◆ focus groups

◆ face-to-face interviews

◆ on-line research.

1. Which approach will you use to discover where are you now?

2. Which approach do you think would gather the most useful

data?

3. To what extent will you conduct the research using your staff?

4. What outside providers could provide additional service to

you?


Service cycleThe detailed assessment of where you are now can start by

understanding your cycle of service for meeting customer needs.

What this means is to track examples of your customers’

interaction with your company when using its products and

services. For instance, if you operate a consulting company, the

steps in the service cycle might be as follows:

◆ Stimulate leads by placing advertisements in journals (material

service).

◆ Design a web page to raise interest (material service).

◆ Customer calls (material and personal service).

◆ Customer talks to consultant on the phone (personal service).

◆ Customer meets consultant (personal service).

◆ Customer books work and consultant performs said duties

(personal service).

◆ Consultant invoices client (material service).

◆ Client pays bill (material service).

◆ Consultant follows up with client to check on quality of

service (personal service).

◆ Consultant sends client regular newsletters (material service).

For each step in this service cycle it is important to assess:

1. How easy is it for the customer to work with us?

2. What could be done to make our systems more customer-

friendly?

3. What else could we do to make our service experience more

positive?

Hotel assessment

Following is a sample checklist for a hotel to evaluate where it

stands in providing exceptional personal and material service.

Evaluating the effectiveness of strategy and management requires

a general approach. Assessing material and personal service

standards usually follows the service cycle. For instance, for the

hotel it would start with the booking systems, move to check-in,

etc.


Strategy

◆ Is there a visible customer service mission statement?

◆ Is there a visible customer service ‘slogan’?

◆ Is the General Manager’s name available to guests – or is ‘the

management’ the typical signature of the day?

◆ Is there a personal letter from the General Manager greeting

each guest?

◆ Is there a formal process for gathering feedback?

◆ Is any formal customer research done?

Note: if none of the above exists, it’s a good indication that

service is not a real priority.

Material service checklist

Lobby/check-in:

◆ Is there a concierge?

◆ Is there a doorman?

◆ Is a map of the facility given at check-in?

Bedroom (though most business travellers travel alone, more and

more are taking their spouses along, but most business rooms are

only designed for one person):

◆ Is the TV large enough?

◆ Is there space to walk around the room with two people in it?

◆ Are the explanations for phone usage clear?

◆ If there are quick dial buttons on the telephone, do they work?

◆ Is there a voicemail and if so can you access it from the

telephone or do you have to go through the operator?

◆ Is there a phone jack for an Internet connection?

◆ Is there a table to work on?

◆ Is the height of the table comfortable to work on?

◆ Is the lighting sufficient?

◆ Is the storage space sufficient for two people?

◆ Is the bed comfortable?

◆ Is there a clock radio and does it work?

◆ Are there two chairs to sit on?

Bathroom

◆ Can two people be in the bathroom at the same time?


◆ Is a hairdryer supplied? Is there a convenient plug?

◆ Is there shampoo, conditioner, lotion and mouthwash?

◆ Are there enough towels – at least two per person?

◆ Is there space to lay out toiletries?

Health club:

◆ Are the hours of the health club convenient for business

guests?

◆ Are the hours consistently displayed in the hotel information,

on the door and given by the hotel staff?

◆ Is the capacity of the health club sufficient for the size of the

hotel?

◆ Is there a swimming pool, cardiovascular equipment and

weights?

◆ Are there towels, a fan and drinking water?

Personal service checklist

As you can see, the moments of truth for personal service are

different from those for material service, but many may originate

from poor or inadequate material service standards.

Lobby/check-in:

◆ Does the check-in person smile and use the customer’s name?

◆ Is the lobby staff able to answer simple questions about the

hotel and facility?

◆ Is a map offered to guide guests around the hotel?

◆ Is the bell staff knowledgeable and willing?

Bedroom:

◆ Are guests shown around the room by the bell staff?

◆ Does the housekeeping staff smile at guests in the hallway?

◆ Does the housekeeping staff greet guests as they are walking in

the hallways?

Operator:

◆ Do telephone operators answer the phone with a smile in their

voices?

◆ Does the telephone staff use the correct tone of voice?

◆ Is telephone staff helpful in meeting customer needs?


Health club:

◆ Is the staff – if any – willing and helpful?

Dealing with unusual requests:

◆ Does the staff know how to answer requests that are not

‘normal’? For instance, when asked if the health club can be

opened early, generally ‘no’ is the common though unnecessary

response.

◆ Are these requests tracked to determine if changes need to be

made to material service standards in order to meet them?

(For instance opening the health club at 8 a.m. is unacceptable

to business guests.)


◆ Are customer complaints currently tracked?

◆ Is the customer offered recompense if not satisfied?

◆ Are material service problems tracked?

◆ Are processes and procedures constantly reviewed to update

standards?

Managers

◆ Do managers take any regular customer service training?

◆ Do managers play the role of the service provider at any time?

◆ Do managers understand the difference between personal and

material service?

◆ Do managers coach their staff on a regular basis on providing

customer service?

The best way to create a checklist for your organisation is to get

someone who understands customer service to:

◆ View the system as a beginner would without knowing

anything as an employee – new recruits are great at doing this.

◆ Ask any employees who have friends to try and ‘break the

system’ within the boundaries of fairness.

◆ Ask for formalised research into customer service standards

from an external consultant.


Exercise Define your service cycle and assess current standards of service.

What are the main steps in your service delivery cycle? How is the

customer introduced to you? What happens next? What are the

other important steps?

For each step in this service cycle:

1. How easy is it for the customer to work with you?

2. What could be done to make your systems more customer-

friendly?

3. What else could you do to make your service experience more

positive?

4. What other services could you add?

5. What processes actually hinder the service delivery at this

point?

6. What processes might be added to smooth service delivery at

this point?

7. What will you do differently to improve the effectiveness of

your service delivery cycle?

Case Study: Cleanworks: the driving force

As we saw in Chapter 1, Cleanworks is a new organisation. Their four core

competencies were defined as:

◆ top-quality customer service

◆ high-quality cleaning results

◆ pick-up and delivery

◆ management expertise.

When the concept of providing exceptional customer service was originally

defined in their charter, the company viewed it as being skills-related. When they

started conducting more research, they discovered that to really create a

customer service culture meant aligning the differing providers around strategy,

defining clear job requirements, instituting a customer service training

programme and ensuring effective service delivery processes. How they

approached creating a customer service culture will be defined in detail in the

following chapters.

Where are they now?

As they are a new company, there is no data to gather in terms of their current

status, but instead they did two things.


First they conducted extensive research (described briefly in Chapter 1) to

identify customer needs. They used an advertising agency to conduct focus

groups with customers. The advertising agency then used this data to begin

creating a corporate identity and slogan.

Secondly they mapped the service delivery process from start to finish as a way

to anticipate problem areas and design strategies in anticipation of the issues.

The key steps in the process were:

◆ To solicit customer business by advertising, flyers and other

promotional efforts.

◆ The customer calls the service centre to arrange pick-up of

laundry/dry cleaning.

◆ The van driver picks up the laundry and/or dry cleaning.

◆ The laundry and dry cleaning arrive at the plant and are

unloaded.

◆ The laundry and dry cleaning are returned to the customer.

◆ The customer receives a bill once a month.

Additional contacts between Cleanworks and the customer anywhere in the

service cycle could be:

– Call to obtain answers to technical questions.

– Call to change delivery dates.

Understanding these steps in the service delivery cycle enabled Cleanworks to

establish service standards for each of these components. These standards will be

listed more fully in Chapter 7.

Case study: Kitchen Barn: the driving force

Kitchen Barn had hired a new Senior Vice President at the same time that a new

retail organisation, with venture capital funding had just entered the

marketplace. A new retail organisation had recently been established and the

rapid growth of web-based selling was challenging their traditional distribution

channels. While the organisation separately decided to investigate more web-

based and catalogue marketing, the Senior VP of Retail, Gary, was given the task

of deciding strategies to protect Kitchen Barn’s position in the retail market.

While there are several positioning possibilities, since Kitchen Barn is a premium

price provider Gary felt that the most effective direction would be to use the top-

service, premium-priced model for the business.

In the later chapters we will present how he drove the strategy, instituted a

comprehensive training programme, consistently updated procedures, and used

reinforcement to keep the initiative alive and well. His management team, as the


main trainers for the programme, acted as the champions for the process and

were able to coach and reinforce the skills.

Where are they now?

Kitchen Barn completed regular secret shopper surveys, conducted by an outside

agency, to assess their current levels of service. These surveys showed clearly that

while the personal service was normally acceptable, customers still perceived the

company products to be overpriced. Also there tended to be an inconsistency in

the way customers were treated. The research gave valuable foundation data,

and was updated as training was rolled out, when more specific focus areas were

identified. In addition, Gary would spend time with new employees within four

weeks of them joining the organisation, to ask them what they would change

based on their prior experience and their insights in their first days of

employment.

Case study: Internet Express: the driving force

Before Internet Express was created by the merger of Network Logic and

MacDonald Software, Network Logic was uniquely positioned towards a small,

highly technical audience. The people who worked for the organisation were

highly-qualified engineers whose customers were similar to them: technically

competent and passionate about the product.

As a result of the merger, the company’s products were repositioned into more

of the enterprise server market and the customer base broadened. Now the

customer could be anyone, from the technical-development engineer, to the Vice

President of Operations to the end user. This meant that the role of the technical

support function changed from fixing the problem with a person who was

technically literate, to sometimes having to ‘fix the customer’ in terms of

educating and communicating effectively. The customer’s agenda could now be

anything from needing information, to wanting complex data explained in a

simple way, to political manoeuvring.

As a result, the requirements for those who interacted with the customer

changed, and individuals needed to become more ‘problem managers’ rather

than ‘problem fixers’. Rather than just training the people in personal service

skills, the Vice President, Arthur, initiated a complete service development

strategy covering the customer services values, changing hiring requirements,

instituting service level agreements and changing measurement criteria. More

details will be included in later chapters.


Where are they now?

Internet Express commissioned a preliminary written customer service survey in

order to assess current customer satisfaction levels. This survey indicated that

apart from the considerable product issues (such as that the product was

unreliable, product upgrades took too long), the staff were perceived as

discourteous and unprofessional. This survey provided the base knowledge for

the customer service improvement process. In addition, the company initiated a

programme, conducted by managers, to call a small percentage of customers

within two days of them interacting with the support centre. The purpose of

these calls was, first for managers to discover the customer’s direct perception of

the service received, and secondly an opportunity to build customer relationships.

The customers selected would normally be from major companies, with whom

Internet Express wanted to have a long-term business partnership. The data

gathered, although less than the more formal written survey, provided a more in-

depth qualitative perspective of the customer’s needs.________________________

Discussion points1. How clear is your customer service strategy? Is it visible,

communicated consistently to all, and practised by senior

management? Remember that any message gets diluted 50 per

cent at each passing, what can you do to communicate the

strategy, and the commitment to the strategy, to your entire

organisation?

2. To what extent are the people you are hiring customer

focused? How do you reward them for providing exceptional

personal service? How do you train them in customer service

skills?

3. To what extent are your material service standards defined?

How effective are your service delivery processes?

4. How do you track any problems that arise? How are the

solutions to short-term problems incorporated into long-term

process improvement?

5. To what extent do managers ‘walk the talk’ in delivering

exceptional service? How far do they coach employees to

deliver exceptional service?

6. To what extent have you conducted, or are you conducting,

customer research? Which of the approaches described in this

chapter would provide you with the most relevant feedback on

your current service levels and customer requirements? What


could you do to institute a more formalised customer research

policy?

7. When you evaluated the components of the service

management model: strategy, people, process, continuous

improvements and management, which required the most

immediate action? Which appeared to be pretty successful?

Summary◆ The service management model is the methodology used to

institute a customer service culture within an organisation,

rather than using customer service as a slogan or platitude

with no cohesive strategy.

◆ Organisations that have adopted this comprehensive service

management approach have succeeded in becoming market

leaders in their field, eg Ritz Carlton (see later).

◆ Before beginning the service improvement initiatives, it is

important to assess where you are now in terms of your

current service delivery. There are two main ways that this can

be accomplished, and they can be used together: one can be

externally customer-focused and the other can be internally,

more systems-focused.

◆ The first approach is to use professional market research to

find out your current standing with your customers. This can

be done both internally using telephone questionnaires, focus

groups, etc and externally using consultants and research

service companies.

◆ The second way is to map your service delivery cycle, in order

to define the important steps involved in meeting your

customers’ needs, and then evaluate what could be done to

improve the process at each point.

◆ Once you have evaluated your current competence, you can

decide which components of the service management model

you wish to address in what sequence, in order to implement a

customer-focused culture.


s we discussed in the last chapter, changing or instituting a

customer service culture requires not only senior manage-

ment commitment, but also a clear and cohesive customer service

strategy. In this chapter we will explain and discuss the important

steps needed to create this cohesive customer service direction.

These steps include creating a customer service vision and strategy,

assessing the critical competencies and weaknesses in delivering

exceptional service as they relate to the customer needs identified

in Chapter 2 and by defining customer service values. We also need

to ensure that the company, team or group remains focused on an

ongoing basis on exceeding customer expectations using customer

service as a key result area. Finally we will create a plan to com-

municate this strategy clearly and consistently to all employees.

Without clearmanagementcommitment,

customer servicewill not improve

CHAPTER 3

Customer Service Strategy

A

Fig. 4. Strategic planning pyramid.

Strategic planning

Co-vision/

mission

SWOT analysis

Customer service

strategy

Customer service

slogan and values

Customer service key result area

The company vision statementThe company’s vision statement gives a clear image of where the

company wants to be in the future, including the reason for its

existence. The vision statement is intended to be inspirational and

to act as a general direction for the organisation. It serves as the

guiding philosophy for the organisation and helps to define the

way the company operates, focusing attention on the future.

Questions asked when companies are defining their vision

statements include:

◆ What is the company’s ultimate purpose?

◆ What do you want the company to look like in the future?

◆ What does the company want to be?

◆ What is the company’s ultimate theme or image?

◆ What is the company’s ultimate contribution to the customer?

The purpose of a company’s vision statement is to guide daily

decision-making in the organisation and capture the essence of

what needs to be done in order to succeed.

Examples of vision statements are:

◆ Oracle: To enable the information age through network

computing.

◆ Kepner Tregoe: We focus on the human side of change

through providing skills development programmes and

consulting services.

◆ Raychem: To win the respect of our customers around the

world, by being a leader in delivering innovative solutions.

◆ Ritz Carlton Hotels: The Ritz Carlton is a place where the

genuine care and comfort of our guests is our highest mission.

When a customer service strategy is initiated, it’s important that

it is in alignment with the organisation’s overall direction as stated

in the company vision. For instance, a real estate company created

a vision statement saying that it wanted to be the market leader in

property management services with an emphasis on customer

service. However they also were planning to cut costs and

negotiate higher rents with tenants. There were two strategies

The statement captures the essence of the business direction

and can act as an inspiration for future performance.

Customer Service Strategy 43

contributing to this vision. The first was improving customer

service, the second related to changing their cost structure to

increase profits. The two strategies were at odds with each other

and therefore the company made the decision to drop the

customer service focus and instead use greater profitability to

achieve their vision.

The Company mission statementThe company’s mission statement communicates the vision by

considering several critical factors:

◆ What does the company want to do?

◆ Who is the company’s customer?

◆ What are the company’s values?

◆ What profit is needed?

An effective mission statement must:

◆ be clear and understandable to everyone in the company

◆ be brief enough to be remembered

◆ clearly specify the company’s business

◆ be based on and reflective of the overall vision of the company

◆ reflect the inherent skills of the company

◆ be broad enough to allow flexibility, but not so broad as to lose

focus

◆ be able to serve as a template by which decisions are made

◆ reflect the values, beliefs, philosophies and culture of the

company

◆ include a commitment to the economic motives of the

company.

Raychem’s mission statement for 1998 was to:

◆ sell $75 million in new products

◆ increase market share from 15 to 17 per cent in a specific

product range

◆ create new business opportunities.

The mission statement is more specific than the vision

statement and can act as a general direction upon which to

build the beliefs and actions that will create a customer service

culture.



SWOT analysisFocusing on customer service, SWOT analysis takes a probing look

at the Strengths, Weaknesses, Opportunities and Threats that face

the company or team in delivering exceptional service. The

analysis is a process of investigating and brainstorming the factors

working for and against the company that could affect overall

service levels. Strengths and weaknesses refer to the company’s

internal advantages and potential disadvantages. It is important

that these factors are in the direct control of the team carrying out

the analysis. Opportunities and threats allude to aspects outside the

company’s direct control that might open up potential

(opportunities) or result in negative consequences (threats).

Opportunities and threats can originate from outside the

company in the market at large, from other organisations, or even

from other departments within the company itself.

This ensures that the planned strategy and direction are possible,

given the company’s inherent strengths and weaknesses. It also

ensures that the strategy is geared towards capitalising on

opportunities and minimising threats.

As an example, the results of a SWOT analysis undertaken by a

training and development consulting firm are as follows.

Strengths

◆ 20 years’ experience

◆ excellent network of contacts

◆ specialised functional expertise in Situational Leadership™ and

Break-It Thinking™

◆ great marketing skills

◆ package of programmes available to sell

◆ organised.

The purpose of SWOT analysis is to view the world in which

you are trying to provide service from the vantage point of the

big picture.

Weaknesses

◆ lack of administrative support

◆ lack of procedures

◆ limited financial resources

◆ too many customised programmes

◆ inadequate resource of trainers.

Opportunities

◆ thriving market

◆ companies are downsizing, creating more demand for contract

trainers

◆ more companies are outsourcing trainers

◆ many business publications write about the importance of

developing human potential as critical to an organisation’s

success.

Threats

◆ Growth in alternative training delivery methods such as

computer-based training may reduce the demand for

‘classroom’ training

◆ there are many one-person consulting firms

◆ future financial market stability

◆ difficulty in raising market awareness

◆ changing company strategies and people moving from one

company to another.

Exercise Conduct a SWOT analysis for your company for delivering

exceptional service. You may want to revisit the exercises you

completed in Chapter 2 on defining your service cycle and ways it

can be improved.

1. What are your company’s strengths?

2. What are your company’s weaknesses?

3. What are your company’s opportunities?

4. What are your company’s threats?


Customer service strategyCustomer service strategy comes from the company’s vision,

mission and SWOT analysis. For example, Colin Marshall said he

wanted British Airways to be the best airline in the world. From

this the organisation created its customer service strategy which

should capture the essence of what you want the service

experience to be for your customers, employees, managers and

business associates. It’s the vision you want them to have when

they think of your customer service.

An effective customer service strategy should meet these

requirements:

1. It should be developed by the staff.

2. It should be in an easily remembered form.

3. It should set high standards so that accomplishing the strategy

means you will be delivering exceptional service.

4. It must have broad support. The entire company –

management, staff and supporting activities must ‘walk the

talk’ every day.

5. It must be aligned with the company’s vision statement.

The purpose of the customer service strategy is to guide daily

decision-making and capture the essence of what customer service

needs to be in order to succeed. Examples:

◆ Avis Rent-A-Car: We’re number two, so we try harder.

◆ Stew Leonard Groceries: Rule 1: The customer is always right.

Rule 2: If you think the customer is wrong, read Rule 1.

Customer service sloganThe customer service slogan or ‘mantra’ exists to capture the

substance of the customer service strategy in a short phrase.

The benefit of the slogan is to focus energy and interest

around the customer service strategy.

A customer service strategy should be inspirational and act as

a general direction for the company.


Examples include:

◆ Nike: Just do it.

◆ Amdahl: A customer problem is an Amdahl problem.

◆ British Airways: Put the customer first.

◆ Ford: Quality is job one.

Too often organisations create a slogan, but then don’t follow

through in other areas to manage the service delivery process. As a

result, the slogan has the opposite of the desired effect, resulting

in increased frustration from both internal and external

customers. The most obvious outcome from establishing a slogan

is an internal marketing communications campaign that is written

off as ‘management’s flavour of the month’.

The president of a financial printing company decreed that

customer service was a priority for 1998, without understanding

how difficult it would be to make his vision a reality. His team,

with unclear direction and no senior management commitment,

proceeded to undertake a company-wide communication

programme, complete with gizmos (cups, T-shirts, etc). The

result, as you might have expected, was extra costs, a ‘muddy’

message and no difference in customer service levels.

The Ritz Carlton hotel chain has named its customer service

philosophy The Gold Standard. It includes:

The Credo:

◆ We pledge to provide the finest personal service and facilities

for our guests who will always enjoy a warm, relaxed yet fine

ambience.

◆ The Ritz Carlton experience enlivens the senses, instils well-

being and fulfils even the unexpressed wishes of our guests.

Slogan:

◆ We are ladies and gentlemen serving ladies and gentlemen.

Three Steps of Service:

1. A warm, sincere greeting. Use the guest name, if and when

possible.

2. Anticipation and compliance with guest needs.

3. A fond farewell. Give them a warm goodbye and use their

names, if and when possible.


The Twenty Basics:

Twenty rules for ensuring excellent service.

Exercise 1. Write down your company’s vision.

2. Write down your company’s mission statement.

3. Write down your company’s customer service strategy.

4. Write down your company’s customer service slogan.

Think about the following questions with regards to your

customer service strategy:

◆ Is customer service mentioned in your company’s vision and

mission statements?

◆ Is anything written in the vision or mission statements that

might inhibit delivery of exceptional customer service such as

cost management, etc?

◆ Do you have a customer service strategy?

◆ Is senior management committed to the customer service

strategy?

◆ Is there a customer service slogan?

◆ Does this slogan have the support and understanding of all

people in the company?

◆ If front-line employees were to be asked, would they be able to

repeat this slogan and strategy?

If the answer to many of these questions is no, and your SWOT

analysis indicated a different business direction, your chances of

instituting a successful customer service culture are relatively

small. Your challenge is then to decide:

1. Can you obtain senior management commitment and focus?

2. Do you want to continue to build customer service from the

bottom up, almost against the culture of the company?

When organisations decide to institute a customer service

culture, more often than not they have to slow down in the short

term in order to gain management commitment and produce

more effective long-term results.

Defining our customer service valuesWhen trying to improve performance, whether it is in customer

service, quality, or profitability, there are two elements that need


to be addressed: the task and the group process. The task element

relates to anything that needs to be done to achieve the goal and

tends to focus on the outcome. The group process element relates

to how well people are interacting with each other to produce the

desired results. Both components need to be working well in order

to meet objectives. For instance, it is hard to deliver great service if

two internal departments are squabbling with each other: the

group process is not working effectively.

It is also hard to meet customer needs if someone doesn’t know

what they are supposed to be doing (task element).

The customer service strategy and slogan give direction in

terms of what the company wants to achieve: the task element in

delivering exceptional customer service. It is equally important for

companies to establish customer service values. Defining these

values is a way of establishing how people in the company are

committed to treating each other: the group process element.

These values provide the underlying framework for internal

customer service. Ultimately these internal values have a direct

impact on external customer service levels.

Values

In building an understanding of customer service values it is

critical to establish the culture of the company. It also acts as a

starting point for developing service level agreements (described

in detail in Chapter 7). Material service standards will not be

effective if they go against the company’s fundamental value

system.

Examples of values are:

◆ achievement ◆ commitment

◆ communication ◆ cooperation

◆ customer comes first ◆ empathy

◆ empowerment ◆ encouragement

◆ equality ◆ expertise

◆ forgiveness ◆ friendship

◆ honesty ◆ innovation/creativity

◆ loyalty ◆ open-mindedness

◆ participation ◆ proactiveness and

◆ respect reactiveness

◆ responsiveness


◆ sense of humour ◆ service

◆ sharing the load ◆ unity

Exercise Define customer service values:

1. Select a team made up of individuals from different levels in

the company.

2. Individually, consider the values you believe are important to

your company in delivering exceptional service. The values

may be included on the above list, but they may also be

different.

3. As a group, combine the values and agree on the top five you

believe will contribute to exceeding customer expectations.

Customer service as a key result areaOnce a company has committed to instituting a customer service

culture, this strategy needs to be included as a fundamental focus

for the business, this is called a key result area.

What are key result areas?

Key result areas are a tool that categorises the company’s entire

workload. While many organisations set objectives for their

members, often there is no direct link between the

purpose/mission, the customer service strategy, project milestones

and the tasks the individuals have to complete on a day-to-day

basis.

Key result areas do not describe the type of results to be achieved,

but rather categorise work into headings. This grouping

procedure is a valuable tool in categorising workload as the

process complements the way the human brain naturally works.

Establishing key result areas is a valuable technique that links

the overall priorities and workload of the company with

project goals and milestones.


Building an overview in the brain

Our brains are structured into three levels of consciousness:

◆ The subconscious brain works 24-hours a day and has, as far

as we know, unlimited capacity. The challenge with the

subconscious brain is that it runs as a random access device –

in other words, it has no filing system from which we can

easily call up information.

◆ We also have a conscious brain, which works only when we are

awake and can concentrate on only one thought at a time. As a

result, when we have a multitude of tasks to complete we feel

overloaded. However, the third level of the brain, the

preconscious, helps us by keeping track of an effective

overview.

◆ The preconscious brain can keep an outline of seven +/– two

(i.e. five to nine categories). If the group can create a list of

approximately seven areas of responsibility covering all aspects

of their work, they will have a complete overview from which

to set realistic goals and milestones. In addition, employees feel

more in control and stress levels are reduced when they can see

the big picture.

Organisational key result areas

Examples of typical key result areas are:

1. Financial management/control: most companies have to meet

budget requirements, control costs and make a profit.

2. Marketing/sales: most companies have to market their services

if they are to survive.

3. Operations: most companies have an operations/process key

result area to cover administrative and routine activities.

4. People: most companies have a key result area that captures

the essence of their people strategy, including hiring, training

and keeping key people.

5. Customer service: having customer service as a key result area

for the business ensures that there is organisational focus in

this area.

6. Manufacturing and distribution: companies that distribute

tangible products often have a manufacturing/distribution key

result area.

7. Research and development: to remain current in today’s


dynamic environment it’s important to allocate time and

energy to research and development.

Exercise Define your team/company’s key result areas:

1. Conduct this exercise with multiple members from your

management team.

2. Individually, on separate stick-on notes, list the specific tasks

that you complete on a regular basis: one task per note. Make

sure you list as many activities as you can.

3. If you have categories such as e-mail or telephone, be more

specific about the purpose of the e-mail: eg are they to

customers, to internal departments, etc.

4. When you are individually running out of ideas, start to work

in groups of three.

5. As you work together, eliminate the duplicate tasks or

activities.

6. Next, group these tasks or activities under sample headings,

such as the ones discussed earlier, or choose from the list

below.

7. Make sure you use no more than seven headings.

8. Make sure customer service is one of these headings or key

result areas.

List your company’s key result areas. Some sample categories are

shown to help you get started with your own.

Financial Sales

Marketing Team development

Customer service Operations

Communication Reporting

Projects Quality

Research and development Manufacturing

Vendor management Purchasing

Process improvement Problem identification

Is customer service a key result area for your business? If it isn’t,

it is highly unlikely that you will be able to deliver exceptional

service. If it is – great news – move on to the next step! If not, ask

again if customer service is really a driving force for your business.

If it isn’t, don’t try to begin a customer service campaign. If you’re

not committed to it, it will not succeed.


Communicating the strategyOnce an organisation has committed to instituting a customer

service culture, this strategy and direction needs to be

communicated to the entire company. There is only one guideline

when trying to announce the strategy: it is communicate,

communicate, communicate and then, if in doubt, communicate!

You need to balance face-to-face, written and electronic

communication channels.

Communication tools and methodologies include:

◆ Regular newsletters around the theme of the customer service

initiative.

◆ Design of corporate identity around the customer service

strategy, so every communication piece has the same look and

feel.

◆ ‘Town hall’ meetings, where the President/CEO holds regular

meetings with the company, restating the customer service

theme. With today’s technology, even global companies can

hold these meetings for all locations using video conferencing

and satellite links.

◆ Posters using the slogan.

◆ Badges, T-shirts, sweat shirts, etc.

◆ Training programmes and seminars (see Chapter 5).

◆ E-mail announcements.

◆ Voicemail announcements.

◆ Other give-aways such as desk gizmos, pens, paper cutters, etc.

◆ Contests and awards (see Chapter 10 for more information).

For instance Ritz Carlton introduces all new recruits to its Gold

Standard programme in an intensive orientation programme. All

14,000 ladies and gentlemen keep this information in sight and in

mind using a pocket-sized laminated card. Research with

organisations such as Ritz Carlton has shown that it takes

approximately two years until this message is received,

understood, believed and acted upon within an entire

organisation.


Case study: Cleanworks: defining strategy

Cleanworks decided to hold a planning session with key players to clearly

articulate the service strategy. The meeting included not only employees of the

company, but the key suppliers who were helping to make the Cleanworks vision

a reality.

Cleanworks’ vision

Initially the group brainstormed lots of ideas to try to capture what would make

Cleanworks unique, some of which are listed below:

◆ time-saving ◆ liberating

◆ keeps your life clean ◆ unprecedented

◆ gives you back time ◆ revolutionary

◆ done the way you want

Remembering that a vision is not the same as a slogan, and that it should help

to guide what a company wants to be when it grows up, Cleanworks finally

defined its vision statement as: ‘Cleanworks will be the preferred cleaning

provider for the year 2000 and beyond’.

When this vision was compared with a customer service direction, the two

approaches were found to be in sync. Customer service would be a key strategy

in making sure Cleanworks was the preferred cleaning provider, and customer

service, as we discussed in Chapter 1, is a key aspect to facilitate long-term

business growth.

Cleanworks’ mission statement

As the company is in its early development, the decision was made to formalise a

mission statement after it had built its first plant. The mission statement, as we

discussed, is far more concrete and tangible than the vision, and therefore

requires real data in order to make it feasible.

Cleanworks’ SWOT analysis

Cleanworks’ version of a SWOT analysis was made up of market research data: it

focused on the opportunities and threats in the market as a whole.

As we discussed briefly in Chapter 2, opportunities identified were:

◆ no one player in the market

◆ lots of corner shops, with limited resources

◆ more organisations in the industry, because of size, were limited in both

ability to advertise and in achieving economies of scale


◆ people were gravitating towards services that made their lives easier because

of time pressures

◆ customer service in the industry was notoriously bad with many documented

complaints

◆ customers indicated they would be willing to pay a premium for top-quality

material and personal service.

Possible threats discussed were:

◆ recruiting people with a positive customer service attitude in such traditionally

low-paying jobs

◆ running a completely new business

◆ possible future competition

◆ instituting home delivery.

The company created a comprehensive business plan that it used to clarify the

investment and cost of return, which proved that, despite the potential threats,

this was still a long-term viable business proposition. Furthermore, customer

service remained a key element in this elaborate business strategy.

Cleanworks’ strategy and slogan

For this business, the slogan was easier to articulate than the vision statement!

The slogan decided on was: ‘We care for your laundry so that you can get on

with your life’.

Cleanworks’ values

The group identified the key values it thought were essential to smooth the

group process. They used the letters of the company name for the values:

C Commitment to the company and each other

L Listen with the intent to understand

E Empathy: putting ourselves in our customers’ shoes

A Attitude: the customer is king/queen

N Never say no to the customer

W Work together to meet customer needs

O Open-ended questions to ensure we are identifying needs

R Responsiveness to customer requests

K Knowledge in our field

S Sense of humour.


Customer service as a key result area

Cleanworks defined its key result areas as follows:

1. Customer service.

2. Marketing.

3. Call centre.

4. Dry cleaning/laundry.

5. Delivery.

6. People.

7. Financial control.

In the business plan, customer service is and has always been a fundamental

part of how they add value to the company.

Communicating the Cleanworks strategy

As Cleanworks currently didn’t exist, the decision was made to use the slogan

and vision in the recruitment campaign. In this way, applicants knew that a

customer service mentality and skills were required. After the employees were

hired, communication became a mixture of the training programmes (see

Chapter 5) and the rewards and recognition systems (see Chapter 10).

Communicating the strategy is far easier with a new company than an existing

one, as you can see from the other case studies.

Case study: Kitchen Barn: setting the strategy – the vision and mission

The core of Kitchen Barn is expressed in their vision: ‘We are in the business of

enhancing the quality of life at home – helping people derive greater pleasure

and social enjoyment from their home environment through high-quality, well-

designed innovative products and exemplary service.’

As you can see, customer service is inherently part of this value proposition.

Kitchen Barn’s mission statement was: ‘To become the dominant home-centred

speciality retailer for quality and design conscious consumers in the US by the

year 2000.

◆ #1 share of the market in each category in which we participate

◆ preferred choice by customers

◆ 15 per cent annual sales growth

◆ 10 per cent pre-tax profit.’

When Gary’s drive to improve customer service was compared with these

statements and the history of the business, they were found to be in very close

alignment. Many of the most successful retail organisations have created their

market niche using customer service as the way they differentiate themselves

from their competitors.


Kitchen Barn SWOT Analysis

A strategic planning process with the executive team identified the following

sample strengths, weaknesses, opportunities and threats as they related

specifically to providing exceptional service.

Strengths:

◆ passion ◆ commitment

◆ humour ◆ talent

◆ improvisation ◆ organisation

◆ compassion ◆ reputation

Weaknesses:

◆ underuse ◆ unfocused

◆ systems reactive not proactive ◆ lack of punctuality

◆ non-cohesive direction ◆ no planning

◆ lack of vision/optimism ◆ no follow-up

Opportunities:

◆ services (interior design) ◆ advertising

◆ direct mail ◆ Internet

◆ involvement in community ◆ promotions/city events

◆ editorial ◆ trends

◆ new suppliers ◆ creating own product

◆ new markets ◆ baby boomers

Threats:

◆ competition ◆ managing supply chain

◆ bad press ◆ market saturation

◆ economy ◆ vendors

◆ disloyalty ◆ lack of integrity

Despite what appeared to be a clear vision and mission statement, the

customer service message did not appear to be understood on the shop floor.

This confused the executive team who thought this was understood by all

working for Kitchen Barn. As a result, they realised that the customer service

focus would benefit from a slogan and clearer communication with the people

on the front line.


Creating a customer service strategy

Gary decided to restate the importance of customer service to Kitchen Barn

by saying the strategy was: ‘To provide the best customer service in the

housewares industry in order to maximise customer satisfaction and

retention.’

Creating a customer service slogan

From this high-level strategy statement, the slogan for Kitchen Barn became: ‘To

make every customer feel like an honoured GUEST in our stores’.

The combination of the strategy statement and the slogan would act as the

foundation for the rest of the service management programme.

Customer service values

The team of district managers completed the values exercise in this chapter

to clarify the customer service values for the retail organisation. When the

results were collated, it showed that the team had agreed upon a cohesive set of

values:

◆ respect

◆ honesty

◆ sense of humour

◆ creativity

◆ commitment.


Kitchen Barn defined its key result areas as follows:


2. Marketing.

3. Sales.

4. Merchandising.

5. Inventory management.

6. Operations.

7. People/morale.

8. Financial management.

Under the customer service key result area, the team highlighted possible

programmes such as:

◆ creating a clientele book system

◆ special orders


◆ problem-solving

◆ personal shopping

◆ additional services: registry, wrapping

◆ standards

◆ philosophy.

More specific tasks and activities to support this strategy and formalise these

ideas will be described in later chapters.

Communicating the customer service strategy

As the SWOT analysis had revealed, all associates did not have a clear

understanding of the customer service strategy. Gary refocused his

communications around customer service in the following way:

◆ He sent out a letter to all staff describing the strategy and slogan and

explaining the reason for this direction.

◆ He went to every store during the pre-Christmas roll-out to personally

communicate with as many staff members as possible the importance of

customer service.

◆ He initiated and supported a ‘wall-to-wall’ training programme (see Chapter

5).

◆ He produced a logo for the GUEST approach.

◆ His retail operations team created a monthly GUEST update newsletter.

◆ He started special rewards and recognition programmes to support the

strategy (see Chapter 10).

◆ He initiated a weekly conference call with all 20 district managers, where the

first agenda item was customer service: sharing success stories and ideas for

improvement.

◆ Not only did he communicate within his division, but with the rest of the

organisation about the customer service focus.

Case study: Internet Express: setting the strategy

Arthur decided to hold several off-site meetings with his direct and extended

management team to set a cohesive customer service strategy. His approach was

hard to implement consistently because of the overall vision and culture of the

company.

Internet Express vision and mission

Internet Express had a combined vision and mission that had guided the strategic

direction of the organisation in the five years of its existence and differing


company names. This statement was: ‘To be the world-wide leader in enterprise

software for distributed-computing enterprise environments’.

Obviously customer service plays an important role in becoming a world-wide

leader in any specific field. However, in the software industry having the most

current, technologically advanced products also heavily influences market

leadership. Sometimes these drives are at odds. For instance, the organisation

may be pressured to release a new product to remain in a market leadership

position. However, if this product has not been adequately tested it may create

customer dissatisfaction and complaints. The technical support function is in a

critical position in maintaining long-term client loyalty, but also has limited control

over release dates for new products. Despite this apparent lack of alignment,

Arthur decided to proceed with his customer service strategy as he felt the

market required them to be more customer-focused.

Internet Express SWOT analysis

Taken from a management retreat, the following represents a cross-section of the

types of ideas that the team identified:

Strengths:

◆ commitment

◆ enthusiastic team

◆ strong visionary leadership

◆ organisation structure now integrated from multiple support structures to

three support centres.

Weaknesses:

◆ lack of processes and procedures

◆ new company so no ‘history’ to refer to

◆ geographically dispersed (three centres worldwide)

◆ relatively young, inexperienced management team.

Opportunities:

◆ build a name for customer service

◆ lots of market growth with the expansion of the Internet

◆ ability to create own format and structure

◆ CEO who believes in the value of technical support.

Threats:

◆ lack of communication/coordination between engineering (who develop the

product) and technical support

◆ if the product is unreliable it strains resources


◆ different physical location from headquarters – out of sight/out of mind

◆ other competitors entering the market and providing better service.

Arthur decided he would define his customer service strategy to capitalise

on the strengths and opportunities, and that he would try to identify specific

tactics to minimise weaknesses and reduce threats. He felt that customer

service in today’s technical world was non-negotiable, and that money and time

invested in this area was as important as investment in new tools and

technologies.

Internet Express strategy and slogan

The strategy that was decided for the technical support group was to move from

a ‘drive fast, take chances’ mentality to a ‘treat the customer as you would wish

to be treated’ culture. He felt that this strategy included both internal and

external customers, and captured the important meaning behind a customer-

focused approach. The purpose of Worldwide Support Services is to maximise

customer retention. The slogan the team chose was: ‘One team, one centre, the

best solution’.

This slogan was meant to unite the three teams, and the various levels of

support (front line level one, back line level two and product support level three).

It also focused on the solutions aspect of meeting customer needs: exceeding

customer expectations is not just about fixing the problem. It includes providing

the best resolution for the customer. That resolution could be as simple as

listening to the customer venting, creating an action plan or providing necessary

information.

Internet Express values

The group decided to adhere to the company values that were clearly defined

and located on posters, business cards, etc. The team thought that changing

these values might cause confusion for the engineers and appear to not be

aligned with the overall corporate direction. Samples of these corporate values

were:

◆ Do the right things – don’t just do things right.

◆ The only constant is change.

◆ Treat others as you wish to be treated.


Internet Express defined its key result areas as follows:



2. Problem resolution.

3. Process re-engineering.

4. People management.

5. Research and development.

6. People.

7. Financial requirements.

8. Internal communication.

9. Marketing service contracts.

A technical support department should always have a customer service key

results area.

Communicating the Internet Express strategy

Arthur used various techniques to communicate the customer service strategy:

◆ He held all-hands meetings at the three support centres.

◆ He distributed via e-mail his overall goals for the coming year, which showed

a strong emphasis on customer satisfaction.

◆ He instituted a ‘high achievers’ award for those who had demonstrated

exceptional service skills (see Chapter 10).

◆ He held regular meetings with those who reported directly to him where they

discussed customer success stories.

◆ He published regularly any positive customer feedback.

◆ He created screen-savers with the slogan and strategy.

◆ He introduced a skills-enhancement training programme for everyone who

had contact with customers (see Chapter 5). ____________________________

Discussion points1. To what extent is your corporate vision and mission statement

in alignment with instituting a customer service strategy?

What facets of these statements would support and which

hinder a customer service initiative?

2. When you conducted the SWOT analysis, what organisational

factors were strengths in providing exceptional customer

service and which were limitations? What factors existed

outside of the organisation that would necessitate and support

a customer service imperative, and which would possibly

inhibit its implementation?

3. Based on the answers to questions 1 and 2, is a customer


service strategy realistic and feasible at this time? What is the

main business driver? Is senior management committed to

customer service or are they paying lip service to the idea?

How could the service direction be made a reality?

4. If the answers to question 3 are positive, what steps will

you take to decide the most important customer service

values?

5. Have you evaluated the responsibilities of your team/function

and included customer service as a key result area? Does this

key result area appear to be in conflict with any other

categories?

6. How will you start the internal communications campaign:

How will you use face-to-face, e-mail and written

communication? How will you ensure that communication

is ongoing and consistent in terms of message and

delivery?

SummaryIn this chapter you have learned about the most important steps to define

a customer service strategy:

◆ Any customer service strategy has to be in alignment with the

company’s vision and mission. If it isn’t, the strategy will not

succeed.

◆ It is important to conduct a SWOT analysis for the company

when implementing a customer service strategy. If not, you

may be unrealistic about your ability to deliver on the promise

of exceptional service.

◆ Once you have made the commitment to exceeding customer

expectations, you need to create a clear customer service

strategy with a slogan or ‘mantra’ that captures the spirit of the

service experience.

◆ In order to facilitate excellent internal service, you need to

define your internal customer service values, which provides

the foundation for excellent external service.

◆ To ensure that customer service remains a priority and visible

at all times, one of the key result areas (the categories into

which the workload for a team, function or organisation fit)

needs to be customer service.

◆ When you have completed this preliminary work, you need to


communicate, communicate and communicate with every tool

and methodology at your disposal, on a consistent, ongoing

basis.


n order to consistently deliver outstanding customer service,

we need not only a clear strategy but to find the right people,

with the critical skills required to provide exceptional service. In

this chapter we will discuss how to manage the recruitment

process to identify and meet the specific requirements for the job.

The recruitment process involves more than just placing an

advertisement! Then we’ll look at specific interviewing strategies

to ensure we select the right people, those with a customer focus.

Finally we will reveal how our companies in the case studies were

able to hire the right people for their teams. With the best will in

the world, if you hire the wrong people any customer change

programme will not succeed: it’s really hard to teach an elephant

to dance!

Hiring or training customer service skillsWhen recruiting employees to provide customer service, the

process often tends to concentrate more on skills, functional

expertise, technical competence and knowledge rather than

interpersonal skills. However, lack of a positive customer service

attitude can drastically impact on customer service levels.

Going for interpersonal skills

The CEO of a high-tech company was in a cab in London with his

Vice President of Sales. They were debating the critical

competencies for sales people. He believed it was better to recruit

people with the correct interpersonal skills/customer focus, and

then provide them with technical training. His VP of Sales believed

strongly that sales people should first have technical knowledge,

and later develop the interpersonal and selling skills. The cab

driver interrupted their debate and asked if he could act as the

guinea pig. He had interpersonal and relationship building skills,

It’s really hardto teach anelephant to

dance!

CHAPTER 4

Hiring the Right People

I

but absolutely no technical knowledge. He joined the company and

within five years became the number one sales person.

The message is this: when considering hiring people in roles

where they need functional knowledge and interpersonal skills, it

is better to hire the interpersonal skills and train the technical side

rather than vice versa.

Managing the recruitment processThe recruitment process is made up of several important steps:

R: Requirements for the team

E: Employee/individual job requirements

C: Candidate sourcing

R: Reviewing background information

U: Understand the roles of the hiring team

I: Interview questions

T: Telephone screening.

Let’s take a more detailed look at each of the steps within the

recruitment process.

R: Defining Requirements for the team

Defining individual responsibilities requires building an overview

of everything the team does, and from there determining the

particular knowledge, skills, talents and abilities that need to be

represented. As team requirements are always broader than the

actual work itself, achieving the proper skill balance is not an easy

task. The team needs a balance of skills and competencies in order

to manage the workload effectively. Following is a sample list of

skills needed on a team.

Technical knowledge/skills

◆ Technical/professional knowledge: level of technical and

professional knowledge and/or education required to achieve

team goals, particularly any specialised information.

◆ Technical/professional skills: level of technical and

professional skills and experience in a particular function, such

as marketing, sales, programming languages, statistical process

control, etc.

◆ Machine/software operation: level of proficiency with

necessary machines and/or software applications.

Hiring the Right People 67

Communication skills

◆ Oral communication: the ability to effectively communicate

verbally in individual or group situations.

◆ Written communication: the ability to express ideas clearly in

writing.

◆ Listening: the ability to understand and use information from

oral communication.

Interpersonal influence

◆ Personal leadership: using appropriate interpersonal styles

and methods to guide individuals or groups towards task

accomplishment.

◆ Team orientation: working with people to build high morale

and group commitment to goals and objectives.

◆ Persuasiveness/sales ability: using appropriate interpersonal

styles to gain agreement or acceptance of an idea, plan, activity

or project. Ability to put people at ease and be liked and

trusted; ability to get along with people.

Personality characteristics

◆ Persistence: adhering to a course of action, belief or purpose

until desired objective is achieved or is no longer realistically

attainable.

◆ Independence: taking action on own convictions rather than

deferring to opinions of others.

◆ Responsiveness: reacting quickly to suggestions, influences,

appeals and efforts.

Management

◆ Planning and organising: establishing a course of action for

self and/or others to accomplish a specific goal; planning

proper assignments of personnel and/or appropriate allocation

of resources.

◆ Control: establishing procedures to monitor and/or regulate

processes, tasks or activities of employees; taking action to

monitor the results of delegated assignments or projects.

Problem-solving/decision-making

◆ Analysis: relating and comparing data from different sources,

identifying issues, securing relevant information and

identifying relationships.



◆ Creativity: generating many ideas; developing solutions to

problems.

◆ Resourcefulness: acting effectively and imaginatively in

difficult situations.

◆ Judgement: developing alternative courses of action and

making decisions based on logical assumptions which reflect

factual information.

Motivational

◆ Job motivation: gaining personal satisfaction from activities

and responsibilities of a job.

◆ Initiative: self-starting, actively attempting to influence events

and achieve goals.

◆ Energy: maintaining a high activity level.

Exercise Build your team’s capabilities list. Consider the team that is

providing service to your customers. Using the skills presented

above list the critical abilities, knowledge and characteristics

required for your team to achieve the desired results.

1. Major responsibilities (from key result areas see Chapter 3 on

strategy).

2. Team responsibilities (desired/required):

i technical knowledge/skills

ii communication skills

iii interpersonal influence

iv personality characteristics

v management

vi problem-solving/decision-making

vii motivational.

E: Employee/individual job requirements

When hiring service providers, it’s your responsibility to ensure

that the person you hire is capable of doing the job as defined by

the job description. Therefore, once a job description has been

developed, specific job requirements should be identified for each

position.

Job requirements are the required and desired qualities that are

necessary for success on the job. Job requirements include:

◆ education

◆ work/related experience

◆ skills and knowledge

◆ job characteristics (the most important job requirements are

the job characteristics).

One tool that will help you evaluate applicants is a job

requirements checklist. (Figure 5 shows a thorough list of

characteristics/job dimensions that you can use to create your own

checklist.

Exercise Building individual job requirements:

1. Think about a particular service provider role.

2. For that role, define the major responsibilities.

3. Then define the job dimensions that are important for this job

role.

4. Pay particular attention to selecting the critical job

characteristics for that role. Try to limit these to four.

Job requirements checklist

Position:

1. Major responsibilities (from job description).

2. Job dimensions (desired/required):

i education

ii work experience

iii skills and knowledge

iv job characteristics.

C: Candidate sourcing

The purpose of a sourcing strategy is to increase the quality and

quantity of the pool of candidates available to you to screen and

interview. Depending on the size of your company, it is possible to

source candidates both internally and externally.

Internal sourcing involves placing a job-posting internally to

identify potential candidates who are in other departments in the

company. There are many benefits of internal sourcing including:

◆ The candidate has prior knowledge of the company and its

products and services.



Communications Oral Effective expression incommunication individual or group situations

Written Clear, effective expression ofcommunication ideas in writing

Listening Understanding and use of infor-mation from oral communication

Personal/ Job motivation The extent to which activities andmotivational responsibilities in a job

result in personal satisfaction

Work standards Sets high goals or standards ofperformance

Self-organisation Effectively schedules own timeand activities

Initiative Self-starting, actively attempts toinfluence events and reach goals

Tolerance for Functions successfully inambiguity situations where information is

vague, conflicting, altogetherlacking or overwhelming

Energy Maintains a high activity level

Attention to Identifies and maintains requireddetail action of individual elements of a

situation, no matter how small

Alertness Attends to all aspects of theenvironment while working;anticipates problems

Integrity Maintains social, ethical andorganisational norms in job-related activities

Patience Maintains mature problem-solving attitude and objectivitywhile dealing with conflict,uncomfortable conditions,hostility or time demands

Self-confidence Trusts in him/herself and ability

Interpersonal Assertiveness Maturely expresses opinions inspite of others’ status or position;effectively deals with conflict

Sensitivity Displays actions that indicate aconsideration for the feelings andneeds of others

Leadership Uses appropriate interpersonalstyles and methods to guide indi-viduals or groups towards taskaccomplishment


Persistence Adheres to a course of action,belief or purpose until desiredobjective is achieved or is nolonger realistically attainable

Persuasiveness/ Uses appropriate interpersonalsales ability styles to gain agreement or

acceptance of an idea, plan orproject

Flexibility/ Maintains effectiveness inversatility varying environments and with

varying tasks, responsibilities orpeople; able to do many differentthings competently

Rapport building Able to put people at ease and beliked and trusted; able to getalong with people

Team orientation Works with people to build highmorale and group commitment togoals and objectives

Independence Takes action on own convictionsrather than deferring to opinionsof others

Responsiveness Reacts quickly to suggestions,influences, appeals and efforts

Resilience Handles disappointment and/orrejection while maintainingeffectiveness

Management Planning and Establishes a course of action fororganising self and/or others to accomplish

a specific goal; plans properassignments of personnel and/orappropriate allocation ofresources

Delegation Uses others effectively; allocatesdecision-making and otherresponsibilities to the appropriatepeople

Control Establishes procedures tomonitor and/or regulateprocesses, tasks or activities ofemployees; takes action tomonitor results of delegatedassignments or projects

Problem-solving Analysis Relates and compares data fromdecision-making different sources, identifying

issues, securing relevantinformation and identifyingrelationships

◆ Hopefully, the candidate has a documented performance path

within the organisation.

◆ There are internal reference sources to consult regarding the

candidate’s abilities and approach.

There may also be some disadvantages to using internal sourcing:

◆ The other internal manager may not want to release the

candidate.

◆ You may have to be more flexible in terms of a start date.

◆ Occasionally, internal candidates are ‘problem children’ who

are being moved around rather than fired.

Most organisations have an internal recruitment policy and

human resources can normally provide details of this process.

External sourcing: there is a wide variety of sourcing channels

open to you when trying to hire externally. These include:

◆ Unsolicited CVs sent by applicants who have targeted your

company.


Creativity Generates many ideas; developsunique solutions to problems

Logic Clear reasoning and consistentthinking

Resourcefulness Acts effectively and imagina-tively in difficult situations

Judgement Develops alternative courses ofaction and makes decisionsbased on logical assumptionswhich reflect factualinformation

Decisiveness Readiness to make decisions,render judgements, take action orcommit him/herself as necessary

Risk-taking Willing to take course of actionnot taken before, or involving adeliberate gamble to achieve arecognised benefit or advantage

Organisational Perceives the impact and thesensitivity implications of decisions on

other components of theorganisation

Fig. 5. List of characteristics/job dimensions.

◆ Advertising. An extremely cost-effective way to source

candidates if managed correctly. It can include newspapers,

both local and regional, Internet, association newsletters (in

your field), radio, magazines, university job listings, etc.

Whichever medium you select the advertisement must be

written to clearly describe the job requirements you identified

earlier. Often companies have arrangements with specific

agencies that help to put together and place recruitment

advertising.

◆ Recruitment agencies/search firms. There are two types of

recruitment agencies – retainer and contingency:

– retainer firms are retained by the company to locate

qualified candidates for specific positions. They are paid a

standard fee by the company regardless of whether the

candidates are hired.

– contingency firms are paid a fee only when a candidate

presented by the contingency firm is hired.

◆ Recruiters. Contract recruiters can be used on an hourly basis.

◆ Networking/employee referrals. One of the best sources of

candidates is through word-of-mouth. This process can be

maximised by:

– networking with other managers to share information about

openings.

– talking to and e-mailing current employees in case they

know a good candidate.

– talking to previous employees.

– checking with your HR manager.

– providing cash rewards for internal referrals.

– keeping your eyes open for great service providers when you

are a customer with other organisations. Remember you can

train technical skills if you find someone with interpersonal

skills.

◆ Colleges/universities and training schemes. Many

organisations run extensive campus recruitment campaigns,

often managed by the director of recruitment.

◆ Associations/professional organisations/usergroups/conferences. Increasingly, professional organisations

can be an excellent source of candidates, particularly if there is

specific technical knowledge required – just watch for the

interpersonal skills too.


Make sure you use as many sources as you can when recruiting for

your team.

Exercise Sourcing candidates:

What sourcing channels could you use for a particular position

you can think of?

◆ unsolicited CVs

◆ advertising

◆ recruitment agencies/search firms

◆ recruiters

◆ networking/employee referrals

◆ colleges/universities and training schemes

◆ associations/professional organisations/user

groups/conferences.

R: Reviewing background information

Prior to the interview, the basic written tool available to you will

be the CV and/or the application form. The CV is the key

document for outside applicants.

The first step in reviewing this written documentation is to

identify any information that is incomplete or confusing to you.

To clarify your understanding, you will want to ask the applicant

about these items prior to the beginning of your face-to-face

interview to clarify your understanding. Red flags on the written

materials are:

◆ preference for a job that is not presently available

◆ incomplete information, such as missing phone numbers,

street addresses, postal codes

◆ stated salary requirements clearly not within the guidelines of

the open position

◆ gaps in work or education history

◆ lack of career progress.

U: Understanding the roles of the hiring team

A key part in preparing for the interview is to select the hiring

team, then:

◆ decide roles and responsibilities in the hiring process


◆ discuss, as a group, the job requirements for the position,

particularly the characteristics, and develop legal interview

questions

◆ allocate the job requirements for interviews to team members

to reduce repetition

◆ decide the evaluation process.

I: Interview questions

The way we gather data about a candidate’s capabilities is to ask

questions about the job requirements. To ensure the diversity of

questions, and to help gather the information required, it’s

normally a good idea to prepare interview questions in advance.

Figure 6 shows some examples of questions for each job

requirement category.

T: Telephone screening

The telephone is an extremely cost-effective and time-efficient tool

in the recruitment and selection process. Often you will conduct

preliminary telephone screenings to:

◆ narrow down the pool of candidates

◆ clarify missing or incomplete information

◆ determine further interest from a candidate

◆ assess compensation requirements and availability.

Guidelines:

◆ Be sure to have the job requirements checklist handy.

◆ Prepare a list of questions.

◆ Move through the questions, listening.

◆ Have a telephone screening form to jot down any notes.

◆ Select questions based on top-priority job requirements.

◆ Check availability, compensation requirements, interest and

relocation status (if appropriate).

The interview processThe next step in hiring the right candidates is understanding how

to conduct an interview.

The interview process includes the following steps:



Communications Oral • What different approaches docommunication you use when talking with dif-

ferent people? How do youknow you are getting your pointacross?

• What are some of the mostcomplex processes/rules/products/situations you havehad to explain to other people?

Written • What are some of the mostcommunication important reports you’ve

written? What reactions didthey get? Were they hard towrite? Why?

• What are some of the mostdifficult writing assignmentsyou have been given or havetaken upon yourself? Explain.

Listening • Give some examples from yourpast jobs when you had to relyon information given to youorally to get the job done.

• How do you show others(managers/customers/peers)you are listening to them?

Personal Job motivation • Give examples of experiencesmotivational in your present job that have

been satisfying, dissatisfying.• Give an example of when you

worked the hardest and felt thegreatest achievement.

Work standards • What are your standards ofsuccess in your job? What haveyou done to meet them?

• Compare and contrast the timeswhen you did work which wasabove standard and times it wasbelow standard.

Self-organisation • What do you do when yourtime schedule is upset byunforeseen circumstances?Give examples.

• What are your objectives forthis year? Who else knowsabout them? What are youdoing to reach them? How areyou progressing?

Initiative • Describe ways you’ve changedyour current job.

• What changes have you tried toimplement in your area of


responsibility? What have youdone to get them started?

Tolerance for • Describe a time when you hadambiguity to make a decision without all

the necessary information.• Describe a time when you had

to perform under conflictingdirections. How did you dealwith the conflict?

Energy • How do you catch up on abacklog of work after a holiday?

• Describe the last time you feltthoroughly exhausted.

Attention to • Describe your system fordetail controlling errors in your work.

• We’ve all had times when wejust couldn’t get everythingdone on time. When and whyhas this happened to you?

Alertness • How do you stay familiar withthe technical aspects of theproducts at your job?

• Describe a time when youpredicted changes in the workenvironment before theyhappened.

Integrity • Salespeople frequently have tooversell a product to make animportant sale. Can you giveexamples of when you did this?

• How far do you think theaverage salesperson in yourfield goes to make a sale? Howfar have you gone?

Patience • Describe a time when youchose not to speak out aboutsomething. Describe a time when you did. What was the differencebetween the two situations?

• Give an example of when youhad to wait for an importantdecision or piece of informa-tion. How did that affect you?

Self-confidence • Give an example of when yourself-confidence led you to takeaction others might not have.

• Give an example of when yourlack of self-confidenceprevented you from takingaction.


Interpersonal Assertiveness • Describe a time when you hadinfluence to tell your manager some bad

news. What happened?• Describe a recent time when

you had to deal with an angryor impatient person. What didyou do? How did they react?

Sensitivity • Describe some situations whenyou wish you had acteddifferently with someone atwork. What did you do? Whathappened?

• What unpopular decisions haveyou made recently? How didothers respond? How did thatmake you feel?

Leadership • Tell me about some of thetoughest groups from whomyou have had to get cooperation.Did you have any formalauthority? What did you do?

• Tell me about a new policy oridea you recently implementedwhich was considerablydifferent from standardprocedure. What approach didyou take to get your employeesto go along with it?

Persistence • What are some big obstaclesyou have had to overcome toget where you are today? Howdid you overcome them?

• Describe a time when you weretoo persistent. What happened?How could you have improvedthe outcome?

Persuasiveness/ • What are some of the best ideassales ability you ever sold to a superior/

peer/subordinate? What wasyour approach?

• What are some of the best ideasyou tried but failed to sell to asuperior/peer/subordinate?What was your approach? Whydid they fail?

Flexibility/ • When have you edited yourversatility normal behaviour to meet the

needs and desires of others?• Describe a situation when you

were required to work withsomeone you disliked.


Rapport building • How did you go about developingrapport with customers, co-workers and people from otherparts of the organisation at yourpresent job? Examples.

• We’ve all had to work withdifficult people. Tell me whenthis has happened to you. Whywas that person difficult? Howdid you handle the situation?

Team orientation • Describe a situation when youdeveloped a group into a strongworking team.

• Tell me about a time when youhad difficulty getting others toestablish a common approachto a problem. What did you do?What was the outcome?

Independence • Tell me about some rules,policies or approaches at workyou didn’t agree with and whatyou did about them.

• What do you do in your job thatisn’t covered in the jobdescription?

Responsiveness • Describe a situation when youwere too late in your response.What did you do?

• Give an example of a timewhen you had to respond to asuggestion, request, etc. Howquickly were you able to reactand in what way?

Resilience • What have been the biggestdisappointments at your job?How have you coped withthem?

Sales • What percentage of your callsresult in a sale? How do youfeel when someone turns youdown?

Management Planning and • What kinds of project planningorganising and administration do you do in

your current job?• What is your procedure for

keeping track of items needingyour attention?

Delegation • How often do you assign workto other people? What do youassign? To whom?

• Who is ‘minding the store’


while you are here? How werethey selected? Why? How willyou know how they performed?

Control • What procedures do you use forevaluating your employees’performances?

• Describe the basic content ofyour staff meetings. How areaction items assigned? Howoften are these meetings held?

Problem- Analysis • What problem are you currentlysolving/decision- working on that came as amaking surprise? How much advance

notice did you have of theproblem? Why was it such asurprise? What steps did youtake after you identified it?

• Describe the biggest problemsyou’ve faced in the last sixmonths. How did you handlethem?

Creativity • What has been the mostcreative accomplishment inyour current job?

• When have you used creativityto solve a problem at work?How did it turn out?

Logic • Tell me about a complexdecision you recently had tomake. What were the keyelements to consider? How didyou make your decision? Whatwas the outcome?

• Describe a situation where youhad to organise a large numberof details. How did youprioritise your work? Whatcould you have done to makethings go smoother?

Resourcefulness • Describe a situation when youwere blocked from reaching agoal or non-negotiabledeadline. What did you do?

• When you first started yourcurrent job, how did you buildyour network of resources?How long did it take?

Judgement • Tell me about a decision whenyou had to balance multiplepriorities. How did you weigheach of the factors?

Opening the interview

◆ create a relaxed atmosphere

◆ explain the interview process

◆ clarify missing or confusing information from the CV

◆ Give brief information about the company and the position.

Collecting information from the candidate

◆ open-ended questions

◆ probing for specifics

◆ active listening

◆ paraphrasing

◆ closed questions

◆ rapport


• What were the hardestdecisions you’ve had to make atyour present job? Tell me aboutthem. What alternatives did youconsider?

Decisiveness • What are the most difficultdecisions you’ve made in thelast six months? Why were theydifficult?

• How have you made importantdecisions affecting your career?

Risk-taking • Tell me about the riskiestmanagement decision you’vemade (present/previouscompany). How long did it taketo gather the information tomake the decision? How longafter that to make the decision?What were the results?

• Describe the biggest calculatedrisk you have taken in your job.

Organisational • Let’s go over the organisationalsensitivity chart you drew for me. Tell me

whom, if anyone, you frequent-ly come into contact with ineach of these departments andfor what reason.

• How often do you make deci-sions that affect departmentsother than your own? Whatkinds of decisions are these?

Fig. 6. Questions for each job requirement category.

◆ silence

◆ note-taking.

Providing information

◆ answer questions about the job, the company and the work

environment.

Closing the interview

◆ explain the next steps

◆ thank the applicant.

Evaluating the candidate

◆ avoid evaluation pitfalls

◆ discard inappropriate information

◆ conduct the evaluation asap.

1 Opening the interview

There are four steps you should follow to open the interview.

a Create a relaxed atmosphere:

◆ arrange for no interruptions: forward your phone, shut your

door

◆ don’t keep the candidate waiting

◆ conduct the interview in private

◆ conduct the interview in private/business surroundings

◆ if possible, greet the applicant in the reception area

◆ make some small-talk

◆ perhaps offer the applicant a drink.

b Explain the interview process:

◆ introduce yourself and your title

◆ briefly explain the title and position you hold

◆ explain that you will be, initially, asking most of the questions

◆ explain the sequencing of the interviews and explain who will

be doing what.

c Clarify missing or confusing information from CV.

d Give brief information about the company and the position:

◆ size

◆ job responsibilities

◆ department.


2 Collecting information from the candidate

This is the most important part of the interview. Too often,

inexperienced interviewers talk about the company and the

position instead of collecting as much data as possible from the

candidate.

There are eight basic techniques used to collect and confirm

information. Many of these techniques are also used to manage

the customer interaction and will be described in more detail in

Chapter 6.

a. Open-ended questions, asked to learn more about the

applicant. Open-ended questions cannot be answered by a

yes or no. They begin with such words/phrases as: who,

what, where, when, why, how, tell me about . . . , describe . . . ,

in what way . . . , etc.

Open-ended questions are effective at getting applicants to

share their thoughts, feelings and opinions. They stimulate

two-way conversation and stop the interview from sounding as

if it were an interrogation.

b Probing for specifics. You have used the opening questions to

identify specific job requirements. Now you need to follow up

the applicant’s answers with appropriate questions and

interviewing techniques. For instance, if a candidate said ‘In

my last job there were always irate customers calling’ you could

probe for specifics with such questions as ‘Tell me about a

specific irate customer situation. What did you do in that

situation? What could have been done to reduce the number of

irate customer calls? What did you try to do to reduce the root

cause of some of these problems?’

c Active listening, which in an interview is a key communications

tool for building positive relationships and assessing a

candidate’s fit within a position. The aim of active listening is

to focus entirely on the candidate and be aware of content and

the underlying meaning being expressed. It is important to

separate your listening from the evaluation process. It is often

tempting to begin to ‘rate’ the candidate instead of listening

with an objective framework to what is being said. Beginning

the evaluation process may result in a distorted perception. I

don’t like the person: now I see more things that cause me to

dislike him/her even more!


d Paraphrasing is restating in your own words what the other

person has said. The simplest way to paraphrase is to listen

without interrupting, and then follow up with a sentence such

as ‘So, what you’re saying is . . . ’ Paraphrasing enables you to

determine whether or not you have accurately understood the

applicant.

e Closed questions are used in the interview to verify data, limit

an applicant’s answer and move from one discussion to

another.

f Rapport:

◆ encourages an applicant to open up

◆ uses words and phrases such as: ‘Oh?, I understand, uh

huh, of course, interesting.’

◆ We also build rapport by mirroring body language, pace

and tone.

g Silence in the interview allows the applicant to gather and

formulate thoughts, while at the same time giving them an

opportunity to respond. Silence can last from four to twelve

seconds depending on the complexity of the question and the

profile of the candidate. See Chapter 6 for more information.

h Note-taking in the interview will help you remember, retain

focus and provide a useful written record when evaluating the

candidate. Following are some guidelines for note-taking:

◆ ask for permission

◆ don’t write notes continuously

◆ use key words

◆ highlight areas you want to return to

◆ do not write on CV or application.

3 Providing information and answering questions

When you are satisfied you have gathered all the information you

need from the applicant, be prepared to answer questions relating

to:

◆ the job

◆ the company

◆ the working environment.


4 Closing the interview

You have now learned the basic techniques for planning, opening

and conducting an interview. Once you have obtained all the

information you need about each of the performance criteria, it is

time to end the interview.

There are two basic steps to closing an interview:

First explain the steps that follow:

◆ Review the hiring process.

◆ Tell the applicant what will happen next.

◆ Tell the applicant how and when he/she will be notified of the

hiring decision.

Secondly thank the applicant:

◆ Thank the applicant for his/her cooperation and interest in the

company.

◆ Show them to the reception area.

It is best to not volunteer too much more information

regarding the evaluation of the applicant. You want to try to

remain as neutral as possible and not give the applicant any false

encouragement or negative feedback. Remember that no matter

what your final hiring decision may be, the applicant could be a

current or potential customer. Be nice.

Finally, there may be times when you feel it is appropriate to sell

the benefits of working for your organisation. While this may be

appropriate in some instances, it is still wise to remain as neutral

as possible regarding your final hiring decision.

Exercise Conducting the interview:

1. Review the job requirements checklist you prepared earlier.

2. Pick one specific job aspect/characteristic that is critical for

your team members to have in order to provide exceptional

customer service.

3. Conduct a mini-interview to gather information from a

partner to assess his/her competence in this area.

4. Remember to:

◆ ask open-ended questions

◆ probe for specifics

◆ listen actively


◆ paraphrase

◆ use closed questions

◆ use rapport

◆ use silence

◆ write notes.

5. Debrief with your partner to discuss what you could have done

more effectively.

5 Evaluating the applicant

Once the interview is complete, it’s time to evaluate the applicant

and the information you have gathered. If at all possible, it’s best

to evaluate immediately following the interview. Try to avoid

evaluation while the interview is in progress. To do so may result

in a failure to cover all the job requirements. In addition, forming

opinions and making judgements during the interview itself may

lead you to ask only questions that confirm your feeling or

hypothesis . . . a sort of self-fulfilling prophecy.

It’s a good idea to jot down a few notes during the interview

that will jog your memory during the evaluation process. While

conducting the evaluation, refer to the job requirements checklist

to further validate the information you received during the

interview.

There are several major pitfalls to be avoided when evaluating

the information you receive from an applicant.

◆ Bias. Try to be aware of any attitudes, prejudices or personal

feelings held towards certain groups of people.

◆ First impressions. Beware of latching on to a single remark

made by an applicant or a single attitude that you might

consider inappropriate. In other words, contrary to

conventional wisdom, don’t go on initial gut feelings. More

often than not this will lead to a tendency to ‘over-test’ your

hypothesis and ask leading questions that will not provide

accurate evidence. You may find yourself attributing to the

applicant ideas, attitudes and feelings that are really your own.

◆ Mirror image. Just as bias and snap judgements can cause you

to evaluate an applicant negatively, the mirror image pitfall can

have exactly the opposite effect. By mirror image we mean the

transference of your own self-image onto another person. We


all have a tendency to gravitate towards people with tastes and

opinions similar to our own. In the interviewing process this

tendency might result in evaluating an applicant more

favourably than the facts warrant.

Inappropriate information: when evaluating an applicant you will

use two sources of information.

1. Information actually reported by the applicant.

2. Observations you made of the applicant’s behaviour during

the interview.

Remember the information is valid only if it relates to specific job

requirements. Do not use information that is irrelevant to

successful job performance or that is drawn from a conclusion

that cannot be backed up with facts.

Here are some examples of appropriate and inappropriate back-

up information:

◆ Appropriate: The applicant found it difficult to make decisive

answers. They didn’t know what they liked or disliked about

previous jobs, didn’t know whether or not to go back to

university, stay in retailing or move into direct sales.

◆ Inappropriate: Applicant seemed wishy-washy.

◆ Appropriate: Applicant explained in detail a system for

monitoring sales volume.

◆ Inappropriate: Applicant showed ‘know-how’.

Exercise Appropriate or inappropriate exercise.

Decide which of the statements below are appropriate

information on which to base an evaluation.

– applicant seems mature

– applicant describes system he/she set up for current job

– applicant lacks self-confidence

– applicant likes working alone on research for large projects

– applicant is people-oriented

– applicant verbalises clear-cut sales strategies when explaining

interest in sales.

(Answers below.)

When you have selected the candidate you think is the best fit,

you’re ready to include that person in your customer service

culture through training, a clear orientation to the company and


by providing rewards and recognition to enhance individual

performance. We will be looking at these subjects in a later

chapter, but let’s look at how the companies in our case studies

ensured they hired the right people.

Answers: The appropriate answers are marked with an a, the inappropriate

answers with an i.– applicant seems mature: no data to back up statement: i– applicant describes system he/she set up for current job: a– applicant lacks self confidence: no data to back up statement: i– applicant likes working alone on research for large projects: a– applicant is people oriented: no data and what does that mean

anyway?! i– applicant verbalises clear-cut sales strategies when explaining

interest in sales: a

Case Study: Cleanworks: hiring the right people

Cleanworks was in the enviable position of being able to hire its entire team from

scratch – an unusual situation. As the company had defined customer service as

one of its keys to business success, the definition of customer service

competencies for all roles was explicitly stated.

Managing the recruitment process: Some of the competencies they identified

for their van drivers were as shown in Figure 7.

The other job characteristics were identified as:

◆ initiative

◆ technical skills

◆ organisation skills

◆ team player

◆ accountability.

The company decided to source candidates not only from the dry cleaning and

laundry industry, but also from other low-income/relatively unskilled labour

industries such as fast food, office cleaning, house cleaning, etc. They primarily

relied on advertising, and posted ads at college campuses, then hired an hourly

recruiter to help screen the CVs.

On the hiring team they used not only the internal management team but

customer service consultants to help filter the candidates for customer service

focus. They created a list of questions, as shown in Figure 8, and allocated

different questions to different team members: the internal managers focused on

questions relating to technical and organisational skills, the external customer

service consultants focused on questions relating to communication and


customer service.

Managing the interview process: The team discovered that by allocating

questions to different team members they were able to hold more productive

interviews and to more effectively contrast the answers from various candidates.

They created an interview evaluation form (shown in Figure 9) where they

rated each candidate against the criteria with a brief explanation as to their

rationale for the rating. They met immediately after each interview so that the

ideas were fresh in their minds and charted the composite score for each

candidate. They discussed any discrepancies and always placed a greater

emphasis on the customer service and communication skills in the final hiring

decision. They made a point of questioning whether their rationale for rating

each candidate was objective. The group discussion helped to eliminate some of

the inherent bias in the evaluation process.


Communication Communicates ◆ Demonstrates effective inter-personaleffectively communication skills

◆ Communicates in an open, straightforwardmanner

Focuses on the ◆ Remains objectivesituation ◆ Focuses on the situation, issues, or

behaviour, not the person

Listens ◆ Demonstrates active-listening skills byeffectively asking for clarification

◆ Communicates using verbal and non-verbalcues

Customer Exceeds ◆ Consistently works to ensure the highestorientation customer level of customer satisfaction

expectations

Effectively ◆ Works with customers to better understandmanages their needs and expectationscustomer ◆ Negotiates and communicates appropriateexpectations timelines for deliverables

◆ Continually seeks customer feedback(internally and externally)

Customer focus ◆ Establishes effective working relationshipswith customers, both internally andexternally

◆ Identifies and takes appropriate action oncustomer needs

◆ Seeks ways to increase customersatisfaction

Fig. 7. Sample competencies identification checklist.

Case study: Kitchen Barn: hiring the right people

Kitchen Barn had always used a clear job description when hiring Sales

Associates, and had customised the job requirements form for their audience.

Because of the change in business focus, they realised they needed to create a

new position, a Product Expert, to act as an adviser in each store on the furniture

and furnishings questions. Part of the job requirements checklist is listed in

Figure 10.


Communication Communicates ◆ Describe how you wouldeffectively communicate bad news to a customer

◆ How would you empathise in thissituation?

Focuses on the ◆ Describe a situation when a customersituation has become angry and begun attacking

you personally. What did you do?◆ How did you prevent the hostility from

escalating?

Customer Exceeds ◆ Describe a situation when you haveorientation customer exceeded customer expectations

expectations ◆ How did the customer respond?

Effectively ◆ Explain a scenario when you had tomanages communicate to a customer that theexpectations date they were expecting a task to be

completed had slipped◆ What did you say to set more realistic

expectations?

Initiative Takes initiative ◆ Describe a situation when somethingto make things was not working and you made changesbetter to make it work

◆ Why had no one else made thesechanges?

Demonstrates ◆ What would you say has been thecreativity most creative accomplishment in your

last position?◆ What kinds of problems have people

recently called on you to solve? Tell meabout your contributions to solving them

Team player Maintains ◆ Describe a situation when you had aconstructive conflict with a co-workerrelationships ◆ What was the source of the conflict?with others How did you resolve it?

Recognises ◆ Give me an example of a piece ofothers positive feedback you gave to another

team member◆ How did he/she respond to the

feedback?

Fig. 8. Sample questions for hiring customer service focused staff.

While the focus of this job was definitely more technical, the job requirements

checklist ensured that technical competence was not substituted for

interpersonal/service skills.

To reinforce the importance of selecting the correct people, Gary invested in

training all the District Managers in behavioural interviewing at the Store


Criteria Rating: Reasons/Notes1 = excellent

10 = poor

Communication

Customerorientation

Initiative

Technical skills

Organisationskills

Team player

Accountability

Fig. 9. Interview evaluation form.

JOB REQUIREMENTS CHECKLIST

Position: Product ExpertMajor responsibilities (from job description)• Act as adviser to store personnel on measuring and installing curtains and purchasing

furniture.• Organise literature to support questions.• Other responsibilities the same as Sale Associates, i.e. operating the register, working on the

shop floor, inventory management, etc.

Job dimensions (desired/required)Education:• Bachelors Degree desired.

Work experience:• Time spent as an interior designer required.• Work in some sort of furniture/furnishings industry, preferably on the consumer side

Skills and knowledge:• Knowledge of the furniture industry• Interior design skills

Job characteristics:• Initiative• Listening• Persuasiveness/sales ability.

Fig. 10. Part of a job requirements checklist.

Managers Annual Conference. In this session, District Managers created

additional questions that could be used in the interview process to identify the

necessary data.

Case Study: Internet Express: hiring the right people

Arthur felt that individuals in this area of work tended to be more technical,

could ‘talk a good line’ in the interview, but tended to demonstrate arrogance

when interacting with the customer.

For this reason he decided to use an assessment centre, to complement the

behavioural interviewing approach that was described in this chapter. Running an

assessment centre involves creating scenarios that future employees might face in

the world of work and then allowing them to role-play how they would respond

in each situation. Assessment centres tend to avoid some verbal camouflage that

abounds in interviews. Have you ever interviewed someone and been really

impressed, but then when they start you wonder how you could have been so

wrong?

Some of the scenarios presented at the assessment centre were:

◆ Instructing a really non-technical customer how to install a piece of software.

(This can cause technical people to get impatient.)

◆ Posing a problem, that although not complex required several questions for an

effective analysis (to assess to what extent the engineer was making

assumptions).

◆ Describing a scenario with multiple agendas (to assess whether the engineer

was only in ‘fix-it’ mode).

These scenarios had been developed for the personal service skills training, so

there were considerable timesavings, plus an alignment between both

approaches. Arthur used an interview team, where each person focused on one

of the specific job requirements: one person was the technical expert, one

probed for problem-solving abilities, one for the ability to successfully defuse

irate customers, etc. This meant that there was an efficient interview process,

and interviewers were better able to compare and contrast different

candidates.

The result from this approach was that some really top-flight technical

applicants were not hired, due to their approach with the customer, and some

less seasoned but willing applicants were hired instead. ______________________


Discussion points1. How do you currently decide the mix of talents and skills

required on your team? What formal processes, if any, are there

to ensure that you are hiring a balanced team to meet

customer needs?

2. What job requirements have you identified as desired and

required for your service providers? How different are these

criteria from the selection categories or job descriptions you

have used in the past? How could you formalise the use of

these job requirements for your hiring process?

3. When it comes to recruiting people, what other sources of

applicants could you investigate? What might be some new

pools of talents that have the right skill mix, but are not

necessarily in your industry? What untraditional approaches

could you use to find new candidates?

4. How else could you use telephone screening in your hiring

process? How could you screen out some of the unsuitable

candidates before they are face-to-face with you?

5. What is your current interviewing process? How often do you

speak more than 50 per cent of the time instead of asking the

candidate questions? What could you do to raise the

competence of those who interview?

6. How many questions have you created to use in the interview?

What are the possibilities of creating scenarios and then using

the assessment centre approach?

7. How effective are you at evaluating the candidate? To what

extent do you wait until after the interview to make a decision,

or do you decide within the first two minutes? What else could

you do to avoid some of these evaluation pitfalls?

SummaryIn this chapter we have highlighted the importance of hiring the right

people in delivering exceptional service.

◆ We found it is better to hire the people with the correct

interpersonal skills and then train the technical knowledge

rather than vice versa.

◆ The recruitment process is made up of several important steps:

R: Requirements for the team: define the overall mix of skills,

knowledge and abilities.


E: Employee/individual job requirements: define specifically

what each employee requires to be successful.

C: Candidate sourcing: use traditional and non-traditional

channels to find the right people.

R: Reviewing background information: don’t waste time face-

to-face with candidates until you are sure you have all the

necessary information from them.

U: Understand the roles of the hiring team: clearly define who

does what and distribute questions accordingly.

I: Interview questions: create detailed, open-ended questions

for each of the important job requirements.

T Telephone screening: use the telephone to narrow the field,

it is cost- and time-effective.

◆ The interview process involves setting the scene, collecting as

much information as possible from the candidate and

providing any information they request. Finally, it is important

to set realistic expectations with the applicant and to

remember that today’s applicant may be tomorrow’s customer.

◆ When evaluating candidates it is important to wait until the

end of the interview to avoid preconceptions. Avoid any biases

and only use relevant, factual data.

◆ Time correctly invested in this area will make the rest of the

service delivery process much easier.


elivering consistent outstanding personal service is a great

challenge to service organisations because personal service is

situational. It varies from one moment to the next and from one

customer to the next. It also varies for the same customer at

different times. As a result it’s hard to predict, measure and

enforce. This chapter will focus on the communication process and

its effect on personal service, describing in some detail the attitude,

words, delivery and body language we must use to communicate

effectively with customers. In the next chapter we will

demonstrate how we use other skills to manage the customer

interaction, in order to set expectations correctly. Although many

of the principles and techniques described in this chapter may

seem to be nothing more than common sense, as we all know

common sense is not necessarily common practice!

What is communication?Communication is the exchange of information between sender

and receiver. Norbert Weiner, in The Human Use of Human Being

– Cybernetics and Society, writes ‘Speech is a joint game between

the talker and the listener against the forces of confusion.’

Too often communication is perceived as ‘sending an e-mail’ or

talking to a customer, but for real communication to take place

there needs to be feedback/response. In order for communication

to be effective the message must be clear and the receiver must

receive it, process it and act on it. Communication includes the

words said, the way they are said and the body language used

during the process. Communication skills will always require

attention and refinement. E-mail is now a widely used method of

communication and requires special attention when dealing with

customers.

Personal serviceis based on

interpersonalcommunication

skills

CHAPTER 5

Developing Personal Service Skills

D

Exercise One-way and two-way communication. The purpose of this

exercise is to show the complexity of the communication process.

Your task is to describe the diagram to your partner so that he/she

can draw it. You will then repeat the exercise with a slight

variation.

◆ The first time there will be only one-way communication: you

can speak, but your partner can’t ask questions, and you can’t

check for understanding.

◆ The second time you will use a different diagram, but there

will be two-way communication. Your partner can ask

questions and you can check for comprehension.

Instructions: first diagram

1. Sit back-to-back with your partner. Make sure he/she cannot

see the diagram.

2. You have to describe the diagram, while your partner draws

it.

3. The first time there is only one-way communication: you

cannot ask questions and the person drawing cannot question

your instructions.

4. You have five minutes to describe the diagram. If you finish

before the five minutes are up, turn around and see how you

did.

5. Compare pictures: how similar are they? What was missed?

What was difficult about this exercise?

Developing Personal Service Skills 97

2

3

4

1 5

Instructions: second diagram

1. Now switch roles: you draw the diagram as your partner

describes it. Again, make sure you cannot see it.

2. This time use two-way communication: you can ask questions

and your partner can answer.

3. Take five minutes, then compare drawings again.

4. How did you do this time? What was easier? How accurate was

the drawing?

The learning points from the exercise are as follows:

◆ Usually when we use this exercise in a training programme the

one-way diagram is hopelessly inaccurate, and pairs normally

give up after three minutes!

◆ With the two-way communication diagram the picture is

normally more accurate; it takes more time, but often the

drawing will be a ‘mirror’ of the diagram.

So the conclusions are:

◆ One-way communication is difficult. It takes less time, but

produces less effective results. If the message is not

understood, two way communication is needed to clarify it.

◆ When there is only one-way communication, the message can

be clarified by providing a clear overview up front (there are

five rectangles, all the same size, touching but not overlapping.

The size of the rectangles is . . . They each have a number

inside and the drawing is in landscape mode).


5

4

32

1


◆ In addition, word choice can enhance the effectiveness of the

message being sent. For instance the use of north, south, east,

west, the use of letters to describe the layout of the rectangles

(the letter ‘T’), being careful about technical language (angles,

etc).

◆ Two-way communication normally produces better results, but

is more time-consuming.

◆ Also, the second drawings are more accurate because of what

was learned the first time.

The communication processNormally when people are asked to identify the beginning of the

communication process they say it begins with words or by

getting the other person’s attention. In reality, the communication

process begins when the sender has an idea, thought or

information that they wish to communicate. The sender must

then formulate or organise the information, considering not only

who will be the receiver, but what they wish to achieve as a result

of sending the message. When the information has been mentally

prepared, it is ready to be sent.

Verbal communication refers to the actual words we use (word

choice/dialogue), and the way we say the words (tone, pitch and

volume). Non-verbal communication refers to body language

(expressions, gestures and posture). When we communicate

with someone with whom we have an ongoing relationship,

credibility also plays a role. Credibility usually comes from the

amount of connection, knowledge or reliability we recognise in

the communicator. The statistics below show that on a first

meeting body language is the main component of

communication. When we have known someone for a while,

credibility becomes more important.

When we are communicating with people face-to-face, we use

both verbal and non-verbal communication.

Initial Ongoing

meeting1 meetings2

Words we use 7% 7%

Way we say the words 38% 14%

Body language 55% 24%

Credibility 55%1Statistics: Mahrabian

2Statistics: Birdwhistle

When we send a message, if we’re lucky the other person will

receive it. However, too often filters such as bias, insufficient

interest, rehearsing, lack of understanding and distraction prevent

the listener from receiving the message. If the listener does receive

the message, they then process it against their own reference bank

and decode it appropriately in order to take action or provide a

response.

Complexity of the processThe diagram above represents a simple explanation of the

communication process. All the steps actually happen

simultaneously. As the sender is thinking of an idea, they are

formulating a sentence and possibly already sending the message.

On the other end, the receiver is sending back a complex

combination of responses during the whole transmission, while at

the same time processing and decoding the information.

Lots of things can go wrong with the communication process.

The sender may have an irrational idea, want to communicate

incorrect data, or formulate the information erroneously for the

receiver. By using the wrong words (too complex, too simple,

jargon, slang), the sender could also offend, confuse, irritate or

bore the receiver. In addition he/she might not deliver the words

effectively (unclear enunciation, inappropriate body language).

From the other side, the receiver might filter out the message or

interpret it incorrectly because of their different frame of

reference. The receiver could also provide a completely

inappropriate response. The process is so complex that it is

amazing anything is communicated accurately at all!

To complicate the process, cultural and individual diversity also


contribute to communication confusion. Since many of us come

from different countries and ethnic groups, our cultural values

and language proficiencies can cause language barriers,

misunderstandings and misinterpretations.

Let’s look at some guidelines for improving the way we send the

message when communicating with customers.

Communication attitude

Attitude is the basis for all the communication skills we will be

discussing in this chapter. Your attitude and approach to your

work can have a drastic influence on the effectiveness of

communication. On the surface, attitude is the way you

communicate your mood to others, but attitude starts in your

head. It is the way you mentally approach situations.

Winner/loser tapes

The human brain is a little like a video recorder. When positive

things happen, they are recorded in the brain as ‘winner tapes’. For

instance, I enjoy making presentations. Whenever I am thinking

about a presentation I automatically visualise a positive outcome

– I play a ‘winner tape’ and the result is usually how I envision it

to be. In the same way, when negative things happen they are

recorded in the brain as ‘loser tapes’. For instance, I received a

first-rate English education, which was theoretically sound but

practically useless! As a result, when I am faced with fixing

something that is broken, or even using the remote control for the

TV, I automatically see myself failing – I play a ‘loser tape’ and

more often than not fail. Remember there’s a difference in

choosing to play a loser tape and being a loser!

What makes us human is that at any one time we can choose

which tape to play. When experiencing difficult situations in our

personal lives, that decision can heavily influence not only the

communication process, but also the outcome of the event. For

‘There is nothing good nor bad, that thinking doesn’t make it

so.’

Early Greek philosophers


instance, I have a friend who in one year had a miscarriage, saw

someone commit suicide, nearly lost her 8-year-old son to illness

and whose father died at 56. She would not have been blamed for

thinking ‘Why me? What’s next? Why do the good die young?’, but

she consciously played winner tapes, such as ‘My father had his

first heart attack ten years ago, and yet lived long enough to know

his grandchildren. My son survived.’ As a result she was able to get

through the next year a little more easily than she otherwise

would have. We all know people for whom the glass always

appears half full instead of half empty.

Winner tapes and customer service

While the concept of playing winner tapes can appear simplistic,

choosing to view the day positively when you are a service provider

is essential to providing exceptional service. When a customer uses

our services and is not happy, the loser tape is ‘What a stupid

customer.’ The winner tape is ‘Great! Here’s an opportunity to help

the customer and perhaps he or she will buy more!’

Other examples of winner and loser tapes are:

Loser tapes Winner tapes

There are so many customer The customer is the

problems. reason we’re here.

The back room is disorganised. How can we organise the back

room?

The customer just doesn’t How can we use this

understand. information to gain revenue/

credibility from educating the

customer?

I have too much work to do. Having lots to do makes time

fly.

Exercise Your winner and loser tapes. We often play loser tapes when

dealing with customer problems. Write down your favourite

customer service loser tapes and then replace them with winner

tapes.


The benefit of using this concept within an organisation is

twofold:

◆ First you will have a common vocabulary for taking a positive

approach.

◆ Secondly you depersonalise the experience; instead of saying

someone has a poor attitude, you say they are simply playing a

loser tape. You are observing the behaviour, not criticising the

person.

Sending the message

The words we use

While the actual words used represent only 7 per cent of the

communication process, word choice is still something to

carefully consider. Jargon, complex words and slang can all

confuse the receiver, while language that is too simple can be

patronising. Some important points to remember about word

choice are as follows:

General guidelines:

◆ Use really specific words.

◆ Be careful with the word ‘but’: it tends to disqualify all other

words used previously in the sentence. For instance ‘I am sorry

but we are busy’ negates the apology.

◆ Use positive words such as ‘we can, we will, let’s’.

◆ Watch ‘red flag’ words. These are words or phrases that cause a

negative reaction with the customer. For instance ‘no, our

policy is . . . it’s not my job, I don’t know’.

◆ Instead say ‘Normally we . . . , I will find out’.

◆ Use ‘we’ not ‘you’ and ‘I’.

◆ Use action words when resolving issues such as ‘let’s get to the

bottom of this, let’s work towards closure’.

◆ Don’t swear and remember one person’s definition of jargon

could be the other’s definition of swearing.

Use of humour:

◆ Be very careful when using humour with customers,

particularly if there are problems or issues. Half-laughing and

saying things such as ‘Dear, dear, this is the third time the

machine is down this week – not a good week’ could escalate


an already stressful customer situation into severe conflict.

◆ On the other hand, the use of appropriate humour can

dissipate negative energy and connect disparate viewpoints. It

is best to allow the customer to initiate the humour and to

mirror the customer’s style.

◆ Humour is also easier to use when there is an ongoing

relationship.

When explaining/describing:

◆ Use strong visual words that paint a picture.

◆ Use analogies and metaphors to explain ideas differently.

◆ When giving instructions, slow down and use emphasis to

clarify important words.

◆ Don’t use too many words. Keep it simple and precise.

During the interaction:

◆ Be polite and respectful using words such as sir, Mrs, etc. Wait

for permission to use the first name.

◆ Spell out names and repeat numbers.

◆ Consider the receiver and their fluency in English.

◆ Watch judgemental words such as should and ought.

◆ Use the customer’s name two-to-three times during the

interaction, particularly at important moments of truth.

When communicating policies:

◆ Don’t use put-downs. Be as unbiased as possible.

◆ Never criticise other internal departments.

◆ Don’t say ‘That’s not my department’ but rather ‘Other people

specialise in that area.’

Technical terms:

◆ Try to avoid jargon or slang.

◆ If you use technical terms, make sure you define them.

◆ Establish common vocabulary.

◆ Don’t make assumptions when talking to those with less

technical or product knowledge.

When there are problems:

◆ Don’t commit to solving the problem. You can commit to

doing your best to solve it.


◆ Don’t criticise the customer or say it’s their fault.

◆ Express ownership when talking about problems: ‘I am going

to take personal responsibility for this.’

◆ Be positive: ‘I’m going to help you any way I can.’

◆ Only provide the necessary truth. There is a tendency to tell

customers everything that’s happening when they only need to

know what will help them to move forward in the service

interactions.

◆ Give reassurance such as ‘looks like we are on the right track.’

Exercise For your business, list any of the words that might confuse your

customers: jargon, red-flag words, acronyms, etc.

The way we say the words

The way we say the words, or the delivery, has a critical impact on

the extent to which the message is received accurately. Here are

some guidelines to improve the delivery of your message.

◆ Include some variety in pitch and inflection to add interest to

the message. A monotone can cause customers to lose interest

quickly!

◆ Ensure your voice has good tone by using deep breathing and

relaxation techniques to give it a stronger, more resonant

quality.

◆ The volume of your voice needs to be loud enough for people

to hear, but not so loud that it dominates or intimidates.

Volume can be adjusted to make important points.

◆ Speaking quickly may result in the message not being received

in its entirety. Speaking slowly may lose the receiver out of

boredom. Slow down your rate of speech when providing

important information such as detailed instructions or content

facts. Quicken your speech pattern when dealing with more

routine data.

◆ Faulty pronunciation, including names, can result in the

message not being received accurately. While the listener is

trying to interpret the words, they may miss the message.

Failing to articulate words clearly may also result in

miscommunication. Proper enunciation means keeping your

speech clear, precise and easy to listen to.


◆ We all have had habits and use filler words such as ‘like, um,

you know, uh,’ etc. These words clutter communication and

result in the receiver turning off or even counting the number

of filler words we use! Either way, they are not listening

anymore, so avoid filler words.

◆ Emphasise specific/important words.

◆ Use emotion to show interest and commitment.

Following are some other guidelines:

◆ Don’t be condescending or judgemental.

◆ Don’t sound apathetic or anxious.

◆ Don’t get impatient.

◆ Be enthusiastic and encouraging.

◆ Be sincere and genuine.

◆ Do sound caring.

◆ Do sound as if you are calm and in control.

◆ Make sure there is constant dialogue.

◆ Be confident in your delivery.

Exercise Delivery:

1. Repeat the following sentence several times: ‘I did not say you

stole the watch.’

2. As you repeat the sentence, place a different emphasis on each

word as underlined.

3. Make a note of the different meaning you inferred from the

emphasis, and why it had a different meaning.

I did not say you stole the watch.







Answers for these interpretations are listed below.

As you can see, changing only the emphasis changed the whole

meaning of the sentence. Getting upset or playing loser tapes can

cause us to change our delivery, inadvertently influencing the

receiver in a negative way.


Answers

Statement MeaningI did not say you stole the watch. Someone else said you stole it.

I did not say you stole the watch. Firm emphasis.

I did not say you stole the watch. I implied you stole the watch.

I did not say you stole the watch. Someone else stole the watch.

I did not say you stole the watch. You borrowed the watch.

I did not say you stole the watch. You stole a cheaper watch.

I did not say you stole the watch. You stole something else.

Body language

Contrary to popular belief our word choice and delivery, as we

saw earlier in this chapter, is only a small part in the effectiveness

of our message. Our body language is comparatively more

important. Body language is an idiom we all speak, but few

actually understand. It’s an extremely complex form of expression.

Body language guidelines:

◆ Body language is subconscious. We don’t necessarily

understand the messages we are sending. In fact, our gestures

are to a large extent unconscious. How many times has

someone said to you after an interaction ‘You obviously did

not like that person?’ Our body language will often give away

our true feelings, despite what we say. If we don’t like

someone, it will show.

◆ Body language is used to communicate attitude. How you feel

on a certain day will show in your body language and in your

voice. It’s how you show interest. If you are playing a loser

tape, the receiver will hear the lethargy in your voice and your

body language will be more despondent.

◆ Body language is culturally influenced. It varies from culture to

culture and what is acceptable in one culture may not be in

another. Without realising this difference, we can make

incorrect judgements about customers and their messages, or

accidentally offend them by our own gestures. For instance, as

the world watched while Neil Armstrong took the first steps on

the moon, many were undoubtedly confused as to why the

American was signalling ‘up yours’. To many of us, a thumbs

up means everything is going well, but in some parts of the


world it is a derogatory symbol. In some cultures not making

eye contact is a sign of respect; in western culture not making

direct eye contact can be viewed as a lack of confidence or

interest.

◆ Body language is also used to communicate power. Standing

up when someone else is sitting or infringing another’s space

are both examples of how body language is used to exert

dominance. As service providers, we must be careful not to

make customers feel we are trying to exert power over them.

◆ When we are in harmony with customers, we subconsciously

‘pace’ or ‘mirror’ their body language. We speak at the same

speed, lean towards them, nod as they nod, etc. Conversely,

when we don’t like a customer or are feeling defensive, we may

subconsciously ‘dispace’ them. We may talk more slowly when

they are talking quickly, we may move back or turn away. This

dispacing can negatively affect the customer’s experience. As

service providers we can make an effort, while not appearing

manipulative, to mirror the customer’s pace, gestures and word

choice in order to improve their perception of the customer

service interaction.

◆ One of the most important things to remember when reading

body language is that it is composed of a series of signals, not

just one or two. Folding the arms combined with lifting the

shoulders, putting the chin down and a severe facial expression

could indicate the customer doesn’t agree with what is being

said. Folding the arms only is not necessarily a signal of

disinterest: it could simply be a more comfortable position.

Don’t interpret only one sign since combined with other

actions it could mean something else. Knowledge of body

language is used to understand the way you send a message

and to read the level of interest and comprehension of the

customer.

Body language components:

◆ Eye contact and movements. Making direct eye contact with

the customer is a way to build a relationship, though too much

eye contact can be seen as dominating or intimidating.

Remember that rolling the eyes will obviously not

communicate a positive customer service attitude!


◆ Facial expression. Stress and emotions are often reflected in

facial expressions. A smile uses more muscles than a frown, so

exercise your smile!

◆ Movement. Moving around can add energy to the interaction,

but too much movement in a person-to-person interaction may

cause discomfort and be viewed as boredom by the customer.

◆ Posture and stance. Holding yourself upright can

communicate confidence; taken to an extreme, it could denote

arrogance. Don’t wriggle or twitch. Don’t cross your legs or

lean unnecessarily. Watch barriers and move around them

when you can. When a customer changes posture this is often

an indication that a change in communication mode is

required.

◆ Space. We each carry around our unique bubbles of space. We

have three space bubbles: intimate, personal and professional.

If we go into the customer’s space, they will pull back and feel

pressured. We can use this knowledge in two ways. First, when

we want to take control of an interaction we can physically

move forward. Secondly, when we want to make the other

person feel comfortable we can step back.

◆ Gestures. There are over 30 gestures that can enhance the

effectiveness of our message including open hands, nodding

and palms up. We need to use gestures that are comfortable to

us. Unacceptable gestures are pointing and beckoning.

◆ Dress. It’s important to dress appropriately for the business

situation. When we first meet someone our style of dress

affects our credibility.

◆ Breathing. Our stress level will affect our breathing. When we

are stressed our breathing becomes shallow and fast.

Unconsciously, the customer can pick this up and also be

affected. When you are stressed, calm your breathing; it will

help you to relax and get oxygen to your brain so that you can

think clearly. Be careful not to sigh if you are taking a deep

breath to manage your stress.

◆ Natural self. We each possess a unique identity when

interacting with a customer. It is important to assess our

natural self to see how to improve its effectiveness, yet remain

genuine. If we try to modify our style based on other people’s

styles, we’ll come across as insincere. By all means watch other


techniques but adapt them to your own natural style.

Exercise The best way to get a perspective on your body language is to

videotape yourself conducting a role-play with a ‘pretend’

customer. Watch for the body language components discussed

above.

◆ What were the gestures you used effectively?

◆ How was your posture?

◆ How long did you make eye contact with the customer? Were

any eye movements distracting?

◆ How well did you mirror or pace the customer?

◆ What movement were you making? To what extent did it

help/hinder the interaction?

◆ How would you describe your natural self with the customer?

Body Language on the phone

‘If you see a customer without a smile, give them one of yours.’

Often individuals have to interact with customers on the phone.

In this scenario it is very easy to think your body language is

invisible. However, try the next exercise to see that this might not

necessarily be the case.

Exercise Smile in your voice exercise. Find someone to work with and sit

back-to-back with that person. One person will act as the

customer service representative who gives the standard phone

greeting, either smiling or not smiling. They will record if they are

smiling or not when speaking. The ‘customer’ will listen and write

down whether or not they heard a smile. The customer service

representative will repeat the greeting four or five times,

sometimes smiling, sometimes not.

Write down your impressions then check with the customer

service representative to see how many times you were right.

Even on the phone most people can hear a smile in the voice,

either through the tone or the energy exuded. So even if

customers can’t see you, the chances are that they know when you

are paying attention and are motivated, and when you are

distracted and not interested. The statistics we quoted earlier are


different if you are on the phone: 14 per cent of the message

comes from the words themselves, 86 per cent is from the delivery.

It is often better to wait an extra ring than answer the phone when

you’re distracted.

One of the oldest recommendations for those giving customer

service on the phone is to ‘stand up and smile’ as you answer the

phone.

Three styles of communicationThere are three styles of communication

◆ aggressive

◆ submissive

◆ assertive.

Aggressive communication

Communication becomes aggressive when we stand up for our

own rights in such a way that the other person’s rights are

violated. It’s when we express thoughts, feelings and beliefs in

unsuitable and inappropriate ways, even if we honestly feel our

beliefs to be right.

Aggression gives us the advantage at the expense of others and

often serves to degrade others. It leads to a closedown in

communication.

Submissive communication

When we use submissive communication we fail to stand up for

our rights or we express them in a way that allows others to easily

disregard them. We are submissive when we express our thoughts,

values and beliefs in an apologetic, cautious or self-effacing

manner, or not express our ideas at all. We might also use long,

justifying explanations, often putting ourselves down, while

submitting to the wants and needs of others. It leads to win-lose

communication, where neither party is satisfied.

Assertive communication

Both aggressive and submissive communication are ‘automatic’.

They originate from the body’s fight (aggressive) or flight


(submissive) response. Assertive communication is the most

misunderstood: it involves standing up for our own rights, in a

way that does not violate another person’s. It requires a conscious

and deliberate choice as it supersedes our body’s natural reactions.

It leads to an open and honest communication of our own point

of view while at the same time showing we understand the other

person’s position.

For instance, if asked by the customer for something that’s

completely unrealistic (a fairly common occurrence!) the replies

could be:

◆ Aggressive: ‘You have got to be kidding – that’s completely

unrealistic!’

◆ Submissive: ‘Well I guess we could do that, er . . . ’

◆ Assertive: ‘I understand you have some critical

requirements. Let’s discuss what we can do to

meet your needs.’

Exercise Aggressive, submissive and assertive communication. Write down

the details of a situation when you have received an unrealistic

request from a colleague or customer. List an aggressive,

submissive and assertive response.

Now let’s look at how each of our profiled companies approached

training their people. The skills described in the curriculum will

be documented in Chapter 6.

Case study: Cleanworks trains its people

Cleanworks was in the enviable position of being able to train and reinforce the

best personal service skills from the start. With the funding of a major

corporation, it was able to establish a model for training that it called Cleanworks

University.

Cleanworks University was chartered to provide the organisation’s employees

with the skills and knowledge they needed to deliver exemplary service and a

top-quality product. Cleanworks University provided the interface between

employees and a comprehensive range of education resources including

classroom courses, reference materials and self-directed learning units.

Cleanworks University was not actually a building but more of a ‘shop window’

to allow employees to view educational offerings. It was a brokered learning

facility with resources from a variety of suppliers, some internal and some

external. As Cleanworks wished to use self-directed teams instead of the


traditional union structure, the University also included in its curriculum training

for employees on working in self-directed teams. Figure 11 shows a sample

curriculum for customer service training.

The university curriculum included a curriculum for team leadership (for more


Step in process Skills/knowledge required Resources suggested

Orientation to culture Knowledge Psychology of service(for all employees) • personal and material service • one day

• internal and external customers • presented by EM-Power• moments of truth • whole company attends• Cleanworks brand and strategy in one session• communication process • every participant

receives a workbookSkills • session is interactive• verbal communication with exercises and group• non-verbal communication discussions

Telephone interaction Knowledge Telephone interaction skillstechniques • communication process • two days(for call centre staff • customer interaction model • initially presented by EM-and managers) • telephone etiquette Power

• EM-Power trains internalSkills trainers• telephone interaction • 12 people per session• building rapport • every participant• words to use/not to use receives a workbook• open-ended questions • session is interactive• active listening with detailed video-taped• paraphrasing role plays• probing for specifics • feedback after each• generating solutions session is fed into• configuration and verification process improvement• managing irate customers approach

(CLEAR Technique)

Managing customer Knowledge Telephone interaction skillsperceptions • communication process • two days(for van drivers and • customer interaction model • initially presented by EM-managers) Power

Skills • EM-Power trains internal• face-to-face interaction trainers• building rapport • 12 people per session• words to use/not to use • every participant• open-ended questions receives a workbook• active listening • session is interactive• paraphrasing with detailed video-taped• probing for specifics role plays• generating solutions • feedback after each• confirmation and verification session is fed into• managing irate customers process improvement

(CLEAR Technique) approach

Fig. 11. Sample curriculum for customer service training.

information see Chapter 10) and technical/product knowledge. The technical/

product knowledge included more computer-based training and self-paced

packages. The interpersonal skills used more traditional classroom delivery

methodology. Figure 12 shows a sample curriculum for technical training.

Case study: Kitchen Barn trains its people

Kitchen Barn used its internal training department as a partner in developing and

rolling out customer service training. Gary decided to initiate wall-to-wall training:

every person in every store would be trained, no matter how long they had

worked for the company. The purpose of this approach was to ensure that all

people heard the same message at the same time.

The training department had only two people so it was decided to train the

District Managers to run the programme. Facilitation skills and coaching skills are

remarkably similar and Gary thought that if they couldn’t facilitate, maybe they

shouldn’t be managers.

The following approach was used to institutionalise the customer service

training:

1. The Training Director drafted a preliminary training programme based on her

assessment of the competencies and skills required.

2. A pilot programme was run with key store personnel including Sales

Associates, District Managers and Regional Managers. The programme was

used as a discussion to delete irrelevant content and insert customised case

studies and situations.

3. The Training Director then redesigned the programme based on the input

and ran a second pilot programme. This was again attended by a similar

cross-section of different staff. The programme coined the acronym GUEST

for its customer service philosophy:

G: Greet the customer

U: Understand customer needs

E: Explain features and benefits

S: Suggest additional items

T: Thank the customer.

With the successful completion of this programme the Training Director then

created a leaders’ guide and visual aids so any trainer could run it.

4. She then conducted a train-the-trainer programme comprising:

◆ Facilitation skills training for the trainers (all 22 District Managers became

trainers).

◆ The trainers attended the programme as participants.

◆ The Training Director gave the trainer’s overview for each module using

the leaders’ guide.



Step in process Skills/knowledge required Resources available

Overview Knowledge Ideas• dry cleaning • dry-cleaning cycle • use diversity to create a• laundry • laundry process ‘what is laundry’ module

based on process manual• use IFI materials for ‘what

is dry cleaning’ module• include general information

about Cleanworks and theprocess of managinglaundry and dry cleaningfrom initial customercontact through finaldelivery of cleanedproducts

• include information inemployee orientationsession and in anemployee handbook

Arrival and sort process Skills Ideas• detail orientation • for information on fabric• reconciliation with consumer types:

list – Neighbourhood Cleaning • some communication with Association fabric book

customer service agents with – students read bookany problems – on-the-job evaluation

using a sample bag ofKnowledge laundry: ask for fabric• of fabric types: silk, rayon, identification

cotton, linen, polyester, wool Fabric Institute of• of computer data entry and Technology may have

system reference sources on• of how to describe garments fabrics

to differentiate them • for computer process:• of notions and trims – Cleanworks document

process and guidelinesfor describing garments

– students read processwith supervisor

– on-the-job evaluationusing a sample bag oflaundry and askinginventory and itemisingcontents

Fig. 12. Sample curriculum for technical training

◆ Each trainer presented part of the programme, and received feedback.

◆ The group discussed in detail the challenges and learning points for each

module.

◆ The trainers ran the programme for each of their stores (most District

Managers had approximately 11 stores).

This approach meant that every store person could be trained in a six-week

time period (over 4,500 sales associates). The programme was extremely

successful and as a result it was rolled out on a one-a-year basis.

The advantages of this ‘roll-down’ approach are:

◆ Many people can be trained in a short time.

◆ The management team owned responsibility for the training.

◆ The management team was then able to provide follow-up coaching and

reinforcement.

The possible disadvantages of this approach are:

◆ Consistent quality of all the training difficult to ensure.

◆ The District Managers could find it hard to take the time to prepare to run

the programme.

◆ Fluency in the programme could be lost if training did not occur often

enough.

◆ The entire management team was removed from its ‘real job’ for six

weeks.

Case study: Internet Express trains its people

Internet Express decided to bring in consultants to train its field engineers and

help desk staff. They believed that the ‘outside expert’ perspective was required

for technical employees to really understand the importance of these

interpersonal ‘soft’ skills. The programme was customised to the company’s

needs in the following way:

◆ The consultants sat in the call centre and visited customer sites with the

field engineers.

◆ Based on the data collected they customised the programme to this

specific market segment in the following way:

– All exercises were geared to the company.

– The role plays were based around TARs (technical assistance requests)

that the consultant had observed.

The agenda for the programme is shown in Figure 13. ______________________


Discussion points1. How much emphasis have you placed on training your service

providers with interpersonal skills? What training classes have

they been sent to? How do you rate not only their awareness of

their personal communication skills, but also their ability to

read the customer’s body language?


Managing customer perceptions

Introduction • facilitator welcome• ice-breaker/introductions• objectives/agenda• role of technical support

The business • customer service quizenvironment and • the importance of customer servicecustomer service • material and personal service

• internal and external customers• moments of truth

Maximising • communication exercisecommunication • understanding communicationeffectiveness • components of communication

• sending the message, communicating with thecustomer – role plays

Managing the customer • step one: start the interactioninteraction • step two: establish the customer’s agenda

• step three: establish a plan• step four: finish the interaction• video tape ‘real world’ role plays

– setting customer expectations– no ‘transparency’– dealing assertively with customer requests– communicating effectively while doing

damage control– handling customer conflicts

Dealing with difficult • use the CLEAR technique:customer situations – calm your emotions

– listen actively: content and exercise– empathise with the customer: content and exercise– apologise to the customer: content and exercise– resolve the situation: content and exercise

• how to respond when the process does notmeet the customer’s needs

• video-taped role plays• feedback

Fig. 13. Sample training agenda.

2. How many of your team obviously play loser tapes? How could

you encourage these individuals to play winner tapes instead?

How could you use the concepts of winner and loser tapes as a

morale-boosting technique?

3. To what extent does communication with your customer take

place on the phone or face-to-face? How does that affect the

difficulty of the customer interaction?

4. To what extent do you hear your people use assertive

communication? How could you support them in using

assertive rather than aggressive or submissive styles?

SummaryIn this chapter you have been given a comprehensive overview of the

communication process and the personal service skills needed to

successfully send an effective message. In the following chapter you will

learn more about managing the customer interaction, before moving on to

setting standards for personal service and using different skills to recover

from difficult situations.

We learned the following information about personal service skills:

◆ The communication process is extremely complex and is the

basis of personal service skills.

◆ Attitude plays an important role in delivering exceptional

service. The concept of playing winner tapes instead of loser

tapes can be used to help steer your attitude in the right

direction.

◆ Sending the message effectively to the customer involves

choosing the right words, using delivery to enhance the

message, and being aware at all times of your body language

and using it as a tool to improve rather than detract from the

message. It’s also clear that we can ‘hear’ body language over

the phone.

◆ It’s important to use assertive communication with customers,

rather than aggressive or submissive communication. Assertive

communication produces a win-win result.

◆ Organisations use many approaches to provide these skills to

their employees: an internal university, a ‘roll-down’ training

approach or the use of outside experts. The consistent factor in

all approaches is customisation of the concepts to the real

environment within the organisation.


n the last chapter we described the personal service skills

involved in sending an effective message. As we stated,

communication is the exchange of information between the

sender and the receiver. In this chapter we will focus on the

communication skills required to successfully manage the customer

interaction and obtain a response from the customer.

In addition we will also briefly outline four differing styles of

communication. If service providers are able to shift their style in

order to match the customer’s, the possibility of a positive

interaction increases. Moments of truth happen when all the

service skills introduced combine to create a customer impression,

either positive or negative. In this chapter we will revisit moments

of truth in some detail, and provide examples of specific moments

of truth that the companies in our case studies faced and

addressed successfully.

Managing interaction and buildingcommunication with the customerMost of the work we have done so far has been on the way we

send the message. Now let’s spend some time looking at how to

manage the interaction and build effective two-way communication

with the customer. Managing the customer interaction in this way

will ensure we set appropriate goals for customer expectations,

and by doing so are able to exceed those expectations.

The customer interaction model to produce the BEST result has

four steps:

The key factor inexceedingcustomer

expectations is toset them correctly

in the first place

CHAPTER 6

Managing the Customer Interaction

I

By setting customer expectations appropriately, we stand a

better change of being able to exceed these expectations and

satisfy the customer requirements.

◆ B: Begin the customer interaction

– gauge mood

– build rapport

◆ E: Establish the customer’s agenda

– ask open-ended and closed questions

– be quiet

– listen actively

– probe for specifics

– paraphrase

◆ S: Satisfy the customer’s needs

– generate more than one option

– consider the customer’s perspective

◆ T: Thank the customer and verify the next step

– thank the customer

– verify who will do what by when.

Step one: Begin the customer interaction

What makes a lasting impression on customers is the way they aretreated at the beginning of an interaction. First impressions arelasting ones. Interestingly it can take only 30 seconds to get a firstimpression: the body language shows disinterest, the tone of voiceis lethargic, etc. We need to make sure the initial interaction is apositive, impressive one. We want customers to feel we areavailable to answer questions and solve problems, whether thecustomers are internal or external.

Not only does the first impression set the tone for the rest ofthe interaction, but also generally the beginning and the end areremembered more clearly than the middle – a concept calledprimacy and recency. By getting started in a positive way you areable to establish trust and improve communication during theentire interaction.

In this step we want to:

◆ Gauge the customer’s mood by observing their body language

in terms of facial expressions, pace, movement, etc. As you

assess the customer, it is important not to pre-judge – all

customers are created equally and appearances can be

deceptive.


First impressions make a lasting impression.

Managing the Customer Interaction 121

◆ Establish professional rapport with the customer by mirroring

their pace, energy and word choice. For instance, if the

customer is in a hurry and is speaking quickly, you need to get

to the point quickly. If the customer is moving more slowly and

engages you in conversation, it could appear rude if you try to

move on to establishing the customer’s agenda before they are

ready.

◆ Rapport can also be established by conducting small-talk on

either personal or professional issues. For instance you could

discuss the general business situation within the company.

◆ You’ll know when to move on to the next step of the interaction

when the customer changes posture in some way: by picking up

a pencil, leaning forward, etc. It’s then time to make the

transition to the most important step in managing the

interaction: establishing the customer’s agenda.

Step two: Establish the customer’s agenda

The purpose of this step is to understand what the customer

wants and/or needs. You will need to use some essential

communication skills to gather the most complete information

possible before jumping in to meet the customer’s needs, or to

resolve a situation.

The skills needed to establish the customer’s agenda are:

◆ ask both open-ended and closed questions

◆ wait for the response

◆ listen actively

◆ probe for specifics

◆ paraphrase.

Ask open-ended questions. There are two types of questions:

open-ended and closed. Open-ended questions cannot be

answered by a yes or no and serve to open up communication.

They are designed to gather information and data about the

customer’s requirements.

Don’t assume.

It’s not only the answers that count, it’s the questions.

In our society we are not very good at asking open-ended

questions since we don’t want to waste time. Open-ended

questions may appear to be more time-consuming initially but

save time in the long run since they result in a more positive and

productive interaction.

Open-ended questions begin with the words: tell me about,

describe, explain, who, what, where, when, why and how.

Examples are:

◆ Tell me about the approach that you wish to take.

◆ Explain what you have done previously.

◆ Describe the critical steps in this process.

◆ What is your idea?

◆ Why do you want to tackle the issue this way?

◆ Who else could we involve?

◆ When should we begin the project?

◆ Where else could we go to get help with this?

◆ How can we improve the existing set-up?

Exercise Change the following closed questions to open-ended questions.

1. Have you checked the hardware in the system?

2. Do you have any questions?

3. Have you any other needs?

Answers

1. What changes have you made to the hardware in the system?

When was the last time you checked the system hardware?

2. What questions can I answer for you?

What other issues do you need help with?

3. What other services can I offer you today?

What other needs do you have in terms of system performance?

Closed questions normally begin with an auxiliary verb such as

can, will, have and did. They are used to close down a part of the

conversation and to verify actual information. Examples of closed

questions are:

◆ Do you have any questions?


Closed questions can be answered by a yes or no and serve

to gather specific data.

◆ Is that all?

◆ Do you want three or four?

◆ Will you do this?

◆ Have you done this before?

Either type of questions is good as long as it serves to gather

relevant information or helps move the interaction in a positive

way.

Wait for the response. Too often when we ask open-ended

questions we are either too impatient or too uncomfortable with

the silence to wait for an answer. We then either answer our own

questions, or ask another question, or ask the same question

again. As a result the customer may get confused and become

reluctant to give us the information we need. If you answer your

own question, it will set the tone that you don’t expect an answer.

Make sure you allow time for a response: 4–10 seconds. The

time taken to respond depends on:

◆ The complexity of the question.

◆ Your relationship with the person addressed – the better you

know them the quicker they will answer.

◆ The way the person processes data, externally or internally.

◆ Their fluency in English.

◆ Their cultural values and beliefs – some cultures are more

reserved in expressing their own needs.

Exercise Pausing:

1. Get a colleague to ask you a question.

2. Then ask them to time ten seconds and tell you when they are

up.

3. How did that feel? Normally people comment that it felt more

like ten minutes! Silence is not easy to manage, particularly in

our western society where we value speaking above listening.

Active listening is one of the most complex communication skills

yet one that receives poor attention in our society.


Remember that silence is golden.

Listening is an art. Once developed, it can be priceless.

◆ At school we spent over ten years being taught how to speak,

while no instruction was given on how to listen. Being seen and

not heard is not the same as learning how to listen.

◆ Our society often places power with the speaker not the listener,

so we tend to view listening as a passive activity.

◆ Our brains can process information at over 250 words per

minute, yet we can only speak at about 125 words per minute.

As a result, half the time we are listening we have time to be

bored, which sometimes results in only hearing half of what is

being said or not listening at all.

◆ Common barriers to listening include rehearsing (practising

what you are going to say while the other person is talking),

boredom, lack of interest and stereotyping.

◆ In reality, listening is an active skill that gives control of the

conversation to the service provider who is listening. Good

listening is a prerequisite to good customer service.

Below are a few ideas to help you improve your listening skills:

1. Pay attention to the other person. Stop your mind from

wandering as they are speaking. Many people write notes while

the customer speaks (in sales/telephone interactions) to help

focus on the customer’s words. If you take notes, write only key

words. Writing the customer’s words verbatim won’t help your

listening skills!

2. Process the information as the customer is speaking. Try to

view the data from their perspective.

3. Be patient if their communication style or pacing is different

from yours.

4. Don’t dismiss or judge the speaker because of their appearance.

Listen to what they have to say.

5. If you find yourself rehearsing, ask questions to gather more

data.

Exercise Listening:

1. Listen to the news on the radio.

2. Make notes of the key points.

3. Repeat the highlights back to a friend or another person, and let

them give you feedback on how effectively you listened.


Probe for specifics

Probing for specifics is the skill of taking the basic information

received, repeating it and asking further open-ended questions to

gather more specific data within the subject area.

Paraphrasing is rephrasing in your own words what the customer

has said. Paraphrasing is particularly useful if the customer has

given you a lot of complex information. It has two main benefits:

1. Paraphrasing lets the customer know you have digested the

information that has been shared and allows you to correct any

possible errors in your understanding.

2. Paraphrasing validates the customer’s perspective by showing

that you heard what was said. This can build the customer’s

trust and respect.

Paraphrasing is:

◆ Not parroting back word-for-word what the customer has just

said.

◆ Capturing the content of the customer’s message in an

abbreviated format.

◆ Not making judgements or providing your own perspective.

◆ Showing that you have understood the feelings, as well as the

content, of the message being expressed.

◆ Distilling the essence of the customer’s words, paying attention

to the underlying meaning.

Exercise Establishing the customer’s agenda. You need a partner for this

exercise. The purpose is to practise asking open-ended questions,

listening actively, paraphrasing and probing for specifics.

1. Individually, select a topic from those listed below.

2. Each person takes a turn at playing the interviewer and the

interviewee.

3. The interviewer asks the interviewee which topic he/she

selected.

4. The interviewer then has two to three minutes to ask open-

ended questions (at least 5–10) and listen actively to gather

information on the topic.

5. During the time, the interviewer will periodically paraphrase

Paraphrasing is a listening skill that can be used to clarify the

meaning of a customer’s statement.


back to the interviewee relevant points showing an

understanding of the information gathered.

6. The interviewee then gives feedback on how the interviewer

asked open-ended questions, listened actively, probed for

specifics and paraphrased.

Make sure that:

◆ The interviewee responds to each question with the minimum

information needed to answer (this forces the interviewer to

ask more open-ended questions).

◆ The interviewee answers no to any closed questions. This raises

the interviewer’s awareness of any closed questions asked.

Topics

Select a topic to use in this exercise:

◆ hobby

◆ vacation

◆ major accomplishment

◆ favourite job.

The learning points from this exercise are often as follows:

◆ It is possible to ask five to ten open-ended questions in two to

three minutes.

◆ Normally when we are interacting with a customer we ask

fewer than five open-ended questions. Sometimes we ask none

at all since we assume we know what the customer wants. And

you know what they say about making assumptions – it makes

an ASS of U and ME!

◆ Often we ask only closed questions even though we think we

are asking open-ended questions.

◆ We need to ask questions in order to satisfy customer needs.

Step three: Satisfy the customer’s needs

◆ It is always necessary to generate more than one alternative so

you have a fallback plan if the first option fails. Try to generate

as many solutions as possible before you go into the evaluation

mode. By jumping to a solution too quickly, you may eliminate

a better solution.


People don’t buy products. They buy solutions.

◆ Too often we react to the first problem or need without

considering more long-term or proactive approaches. This can

limit our effectiveness in delivering outstanding customer

service. We must consider both reactive and proactive

approaches to satisfying customers’ needs.

◆ We tend to think about the best approach from our own

perspective. We need to think about ideas and possibilities also

from the customer’s perspective.

◆ We have to satisfy the real customer need. Often, when the

second stage of the interaction is neglected, we miss the

important moments of truth in the interaction (see the

examples later in the chapter) which results in not meeting the

customer’s real need.

Step four: Thank the customer and verify the next steps

Finishing the customer interaction means making sure the

customer leaves with their needs satisfied and with the subsequent

steps and commitments clearly defined.

At the end of the interaction we need to:

◆ Ensure the customer is satisfied. This is normally achieved by

asking!

◆ Obtain commitments and a specific time-frame for future

actions.

◆ Confirm/verify the above (remember what, who, when) by

summarising the key data at the end of the interaction.

Taking time in this area can ensure we start the next interaction

in a positive way. Too often, the customer and the service

provider leave the interaction with vastly different

expectations.

Adapting to the customer’s styleAnother challenge in meeting customer needs is the different ways

individual personalities are ‘hard-wired’. As a result, what is

acceptable and clear to one customer may be incoherent and

completely unacceptable to another.


Thanking the customer is not the end. It’s a new beginning.

Using Keirsey’s concepts of temperament will also enable you to

more fully understand your and your customers’ natural

communication styles. Each of us views the world through our

own set of lenses and perceptions, distorting reality to match our

own mental picture. We are all unique individuals with our own

complexities and idiosyncrasies, but for 25 centuries four basic

patterns have been consistently and cross-culturally recognised in

the human personality. Temperament theory is based on four

themes. These sets serve as fractals of personality. A fractal is ‘a

pattern underlying seemingly random phenomena’.

In temperament theory we start with an understanding of the

core themes and then examine our basic psychological needs, our

core values, our favourite talents, our common approaches and

habitual worldview. People with the same temperament share the

same core needs and values. This does not mean that these people

are all the same! There are wide varieties, but with strong shared

needs. For example, string instruments are a family of musical

instruments, but there are huge differences between a guitar and a

double bass.

Once we understand our own basic patterns, it becomes much

easier to make more effective choices and communicate with

those customers who are different to us. Let’s look at these

temperaments in more detail.

◆ Artisans live one day at a time, seizing the day and all the

freedom they can get. They are the natural crisis managers and

performers. They are opportunistic, act in the moment and

want to see the immediate, concrete, tangible result of their

actions. As service providers artisans are ‘fixers’, solving the

problem quickly and efficiently. Their main challenge is that

they may not look for the root cause of a problem, and

therefore may solve the same problem many times.

◆ Guardians are driven by responsibility and duty, wishing to

serve and protect their loved ones. They are the pillars of

society and need membership and belonging to a group. Words

to describe guardians as service providers include customer-


The human personality is complex and varying, but

temperament reveals the underlying inborn foundation on

which it is built.

focused, reliable and concrete-results focused. Their main

challenge is that they may be too honest with the customer in

problem situations, telling the truth, the whole truth and

nothing but the truth.

◆ Rationals seek knowledge and competence in all their

endeavours. They seek to understand the operating principles

all around them in order to create their own destiny. Words to

describe rationals’ roles as service providers would include

efficiency-focused, strategic and abstract-problem solvers. Their

main challenge is that they may be oblivious to the people

issues inherent in providing exceptional service.

◆ Idealists are soul-searchers who are constantly on a quest for

meaning and significance in their lives. They want to do

something meaningful for this world and are constantly on a

journey to help people develop and optimise their potential.

Words to describe idealists’ roles as service providers include

people-focused, catalysts, and facilitators. Their main challenge

may be that with their empathy, they may be unable to distance

themselves from upset customer situations.

The main characteristics of each temperament are listed in the

table in Figure 14.

More complete information on temperament is included in the

books listed in the bibliography at the end of this book.

In order to interact effectively with the different temperaments,

it is important to adapt your communication style to match

theirs. The table in Figure 15 gives an overview of the way each

temperament approaches each step in the communication

process. Watch for these behaviours and then try to match your

communication style with theirs.

Speaking all four languages can be quite a challenge. The lists

below are designed to provide helpful hints on improving your

‘language proficiency’.

Communicating with artisans

◆ Use short and more direct communication.

◆ Remember – less is more.

◆ Talk about concrete realities.

◆ Get to the point quickly and keep moving.

◆ Give feedback on their tactical competence.



Characteristics

Guardian • Responsible and want to live up to expectations• Look after the group.• Membership of a group is critical• Structured step-by-step approach to tasks and projects• Want to be useful, offer services• Respect rules and regulations• Get the right thing to the right place at the right time in

the right quantity at the right price• Like security and stability• Prefer cooperation• Focus on standards and norms• Like to create and implement processes and procedures• Create contingency plans• Seek to preserve• Desire continuity• Change must be practical, proven and cautious

Artisan • Quick-thinking• Value skill, especially in performance• In tune with their senses• Want the freedom to act according to the needs of the

moment• Want to leave an impression and see immediate,

tangible results from actions• Tactical competence• Risk-takers• Enjoy variety and action• Seek excitement and stimulation• Like new and fun gadgets• Take advantage of opportunities• Resourceful• Use colourful, colloquial language• Adapt naturally to current environment• Natural aesthetic sense of style

Rational • Want to continually learn about new theories andconcepts – search for knowledge

• Want insights – look for the operating principles of theuniverse

• Pride themselves on their intellectual rigour• Devise strategies• Want to create their own destiny• Critical thinkers• Value logic• Want precision and accuracy• Enjoy impersonal, objective analysis• Skill in design – think through all implications• Sceptical of what appears to be unproven data and

unfounded generalisations• Seek progress and advancement of ideas• Respect intellectual competence in others and demand

it of themselves

Idealist • Need a sense of purpose and contribution to the‘greater good’

• Need genuine, personal connections and relationships• Emphasise communication• Want to be valued for their uniqueness• Respect the individuality of others• Want to continually grow and reach self-actualisation• See the potential in everyone and in humanity – desire

to help others achieve their potential• Empathise with others• Use metaphors to explain learning points• Tune into the authenticity of others• Seek unity and harmony• Diplomatic: build bridges between disparate views• Promote ethics and integrity

◆ Tell them the end result required and let them go.

◆ Expect cynicism and stories.

◆ Adapt to their colloquial language.

◆ Use tools and hands-on experiences when explaining

approaches.

◆ Talk about impact, end results and variety.

◆ Remember, they read body language very accurately so watch

your body language cues.

Communicating with guardians

◆ Talk about what was done in the past.

◆ Explain using a concrete, practical implementation approach.

◆ Be specific about who is responsible for what in terms of roles

and responsibilities.

◆ Explain steps sequentially, starting at the beginning and using

numbering 1, 2, 3, 4, 5, etc.

◆ Be specific about the expected results.

◆ Expect questions about rules, what can be done and what

cannot be done.

◆ Use more formal body language.

◆ Talk about your prior experience.

◆ Focus on efficiencies and process improvements.

◆ Provide lots of data and background information.

◆ Give practical examples.


Fig. 14. Characteristics of the different temperaments.


Area Rational Idealist Guardian Artisan

Subjects Abstract data: Abstract data: Concrete data: Concrete data:around theories around people practical and practical andand systems and their needs tangible around tangible around

process and actionresults

Structure Strategic: Interconnected Linear and Tactical and tocategorised under around a sequential: the point:headings central theme 1, 1.1, 1, 2, 1, 2, 3 . . .

2.1, 2.2, 2.2a,2.2b

Words Precise language: Global Traditional Colloquialsophisticated and language: language: language:elaborate words exagger- respectful and jargon slang,

ation of data considered short and to thepoint

Analogies and Analogies and Examples from Similes andmetaphors metaphors experience stories

Delivery Deliberate Flowing and Structured Fast-paceddramatic

Body Pulling ideas Circles with Finger-pointing Clawing withlanguage out of the air hands and open and chopping handsgestures gestures

Body May appear May appear May appear May appearlanguage distant and warm and deliberate and casual and

preoccupied gushing formal unprofessional

Humour Cerebral: double Use personal Dry: tongue in Outrageous ormeanings, of words examples and cheek, sarcastic physicaland puns self-deprecating

jokes

Questioning Questioning of Questioning to Questioning to Questioningstyle theories and find what’s identify on motive

competence important to relevantthe person experience

Clothes May be status No pattern Dress of the Dress forsymbols or absent group, put comfort or tominded together, create a distinct

conservative ‘look’

Filter Is person How does this What is this What’s in it forinformation competent and person person’s the otherbased on knowledgeable? approach experience and person – have

others? skill set? they made ithappensomewhereelse?

Approach Pragmatic: get the Relationship- Relationship- Pragmatic: getjob done, based: what based: what the job done,competitive about the about the competitive

people? people?

Fig. 15. How the different temperaments communicate.

Communicating with rationals

◆ Start with the big picture.

◆ Use precise language when explaining concepts and ideas.

◆ Give them an opportunity to analyse information and create

new problem-solving approaches.

◆ Make sure of your facts and present theoretical information

where possible. Don’t bluff!

◆ Don’t take any critical questioning personally.

◆ Recognise their intellectual competence.

◆ Define the end goal, but give them the freedom to develop the

model.

◆ Talk about your expertise in a specific field.

◆ Use analogies to make points.

◆ Use the conditional language ‘if this . . . then . . . ’

◆ Always explain what and why.

◆ Be prepared to debate possible approaches.

Communicating with idealists

◆ Talk about the purpose of an approach.

◆ Provide them with positive, genuine feedback.

◆ Be authentic when communicating – they will pick up ‘fake’

conversation.

◆ Focus on the big picture and conceptual ideas.

◆ Use metaphors and analogies.

◆ Talk about the benefits to people of actions: ability to develop

potential and the ‘greater good’.

◆ Don’t discount the global language and listen for the underlying

meaning.

◆ Don’t provide too much practical detail.

◆ Listen to their insights on people, which are usually accurate.

◆ Build an empathetic relationship.

Exercise Speaking the four languages. Think of an idea you would like to

communicate to a customer. Devise a communication strategy in

order to express the idea so as to appeal to all four temperaments.

Address the objections each temperament might have and list the

benefits they would enjoy based on their profile. Then check your

ideas with someone of that temperament.

We often find that we think we are speaking another language,

but we are not!


Moments of truthAs we discussed in Chapter 2, moments of truth are the specific

milestones in the customer interaction when the customer’s

judgement of the service interaction is made. They are similar to

crossroads where you can take a wrong turn and create problems

that you’ll need to recover from later, or where you make the right

decision and build a positive customer impression. By combining

multiple positive moments of truth we create happy customers;

multiple negative moments of truth can create unhappy

customers.

As we discussed earlier, not all moments of truth are created

equally; some carry greater weight than others. Using the service

skills described in this chapter will help to ensure that you

recognise and respond appropriately to every moment of truth.

From the customer’s point of view, moments of truth that can

create an impression in a technical support environment are:

◆ multiple transfers among departments

◆ long waiting time to speak to a ‘live person’

◆ the company is using new processes or systems

◆ no answer to a question

◆ a known problem that hasn’t been solved

◆ being frequently let down by many people in the company

◆ not being provided with the product or service wanted.

As you see, some moments of truth are related to material

service (process/product issues/queue, etc), some are related to

internal service (someone else letting the customer or you down),

and some are related to your listening to and understanding the

customer issues. No matter what the source of the moments of

truth you, as the service provider, have to use professional

communication skills to move on in a positive way in the

interaction and meet the customer’s expectations. In any one

interaction there could be as many as 40 moments of truth: while

we are managing one, we may miss the others and disappoint our

customers.

For instance in a ‘routine’ technical support call the following

moments of truth arose:

◆ Long queue time.

◆ New person in the position, therefore incomplete product

knowledge.


◆ The product had repeatedly failed.

◆ The ‘patch’ that was supposed to fix the problem didn’t.

◆ The person who had been dealing with the issue had failed to

get back to the customer within the promised time frame.

◆ The organisation recently merged with another, and many of

the development engineers left.

◆ The call-tracking system was out of date and overloaded.

◆ The sales person had oversold the product and its capabilities.

Any one of these issues alone could create a dissatisfied

customer, but the conbination created multitudes of precarious

moments of truth. The customer service representative felt as if he

were trying to manoeuvre through a minefield!

When trying to optimise customer service it is important to:

1. Identify the most common moments of truth for the customer,

based on your current business situation.

2. Help those providing customer service to script professional

answers so they can appropriately address these issues.

Examples:

◆ Long queue time.

– Don’t ignore!

– Don’t say ‘I know – I’ve told management but they haven’t

done anything about it yet!’

– Apologise.

– Say ‘This is not the normal situation’ (be careful if it is!).

– Say ‘The company has recently introduced a new product

and this has generated a lot of information-gathering calls.’

– Say ‘The current version of the product is proving very

popular.’

– Say ‘This time of day often has a higher call volume.’

– Say ‘Management is aware of the issue and is working on it.’

– Then use a transition phrase to move onto the real reason

the customer called: ‘Let’s move on to resolve the technical

issues.’

◆ Someone else let them down.

– Don’t ignore!

– Don’t say ‘Joe is hopeless that way – he never does what he

says.’

– Apologise: ‘I’m sorry we haven’t met your needs.’

– Say ‘I would not like to comment on someone else’s actions


as I was not there at the time.’

– Say ‘I will take personal responsibility for your problems.’

– Bridge to ‘I am here now so can we move on . . . ’

◆ You don’t know the information.

– Don’t bluff – body language will give you away.

– Don’t say ‘I don’t know’.

– Say ‘I don’t know. However, I can find out.’

– Find the right resources.

Exercise Moments of truth. Think about some moments of truth for your

service:

◆ What changes have you made to systems recently?

◆ What organisational changes have taken place that might

impact on the customer?

◆ What product/service issues do you know about?

◆ What complaints have you received recently?

List these moments of truth and pick one.

1. What do you feel you shouldn’t say about this moment of

truth?

2. How could you describe this situation positively to the

customer?

3. What else could you do to ensure this moment of truth has a

positive outcome?

Case study: Cleanworks manages its moments of truth

Cleanworks began to script the moments of truth they thought key

service providers would experience. For instance, the people in the call

centre could confront the following important moments of truth:

1. How can I be sure I can trust you with the key to my apartment

building for pick-up and drop-off?

2. To what extent will you guarantee you will pick up and drop off my

laundry and dry cleaning at the time stated?

3. What are the benefits to me of using your services rather than using

my regular dry cleaner?

The team responsible for managing the service initiative, the

management team and consultants, created suggested words around

each of these questions, and these were included in the orientation

training.

For instance, to answer question one: ‘We are part of a large and


reputable company. We take enormous care in hiring trustworthy

people, who will adhere to our company standards in this area.’

To answer question two: ‘We will guarantee we will do our best to

meet your pick-up and delivery requirements. If for any reason we are

unable to do so, we will commit to calling you in advance to schedule

an alternative time.’

The key point to note in this answer is that the customer service

representative is not guaranteeing they will always meet the required

pick-up time. However they are guaranteeing to adhere to an approach,

if the pick-up time cannot be met for some reason. This is an example

of setting realistic customer expectations.

To answer question three: ‘The benefits to you would be greater

convenience and saving time in today’s busy world. In addition, based

on our access to new technology from our parent company, we are

better able to control the quality of the end result.’ The important factor

to note in this reply is to keep the benefits related to what Cleanworks

can provide, not knocking the competition by saying that our quality is

much better than those corner shops.

Case study: Kitchen Barn manages its moments of truth

Kitchen Barn had already identified many of its difficult moments of

truth, and had created a product information manual that answered

many of the difficult technical questions asked. As a more mature

company, they decided to invest in additional training for their people

around adapting their style to meet the different customer styles. The

Training Director created case studies that they used in their weekly staff

meetings, where they had to recognise the customer’s style and then

decide how best to sell to this customer, based on their approach.

For instance, in positioning interior design to an artisan, the Sales

Associates would focus on the aesthetic appeal, and unique look and

feel. In positioning furniture to a guardian, they would focus on the

history and credibility of the supplier, their experience in the industry

and the quality of the product. In positioning products to rationals they

would focus on the innovative aspects of design and the leading edge

manufacturing process of the supplier. In communicating with idealists,

they would focus on the benefits of a comfortable home and on

providing a positive environment for interaction and entertaining. By

adjusting their style, the Sales Associates found that they were receiving

fewer objections, and enjoying their interactions with the customer

more.


Case study: Internet Express manages its moments of truth

Internet Express used consultants to identify the difficult moments of

truth that the team in the support centre were facing. Some of the

specific moments of truth the group needed help scripting were:

• Company merged. The company had recently merged with another

one, both companies had changed their names, and the cultures and

service approaches of the two were very different. In addition, many

of the company’s original employees had decided to leave because

they were uncomfortable with the new management philosophy.

Often customers said things such as ‘When you were . . . Inc, you

were much more customer-focused’, ‘I heard that most of your

engineers have left’. Some of the ideas to address these comments

were:

– ‘We have experienced some growing pains in the transition.’

– ‘We are in the process of rebuilding and integrating the two

technical support functions.’

– ‘There has been some turnover of staff which is very common in

such a dynamic industry/organisation.’

– ‘We are currently integrating all our services into one location.’

– ‘I am sorry – I assure you we are diligently working to improve

customer service.’

• Existing problem. There was a known bug in one specific product

that had not been corrected initially. After some time the company

created a patch for the bug, but had only proactively communicated

this patch to the Gold Service customers. Often customers said things

such as ‘If you already knew about the problem, why didn’t you let

me know about it?’ Some of the ideas to address these comments

were:

– ‘We have just received a patch that resolves this issue.’

– ‘We have been testing to ensure that the patch really does resolve

this specific issue.’

• Sales person oversold the product and has now been fired. Often

sales people describe the product or service in over-generous terms in

their enthusiasm to close a deal. In addition, based on the need to

make a quota, turnover on the sales team is normally quite high. The

company obviously does not want the service engineer to say ‘You

know sales people, they’ll do anything to get a commission!’ Some

of the ideas to address these comments were:

– ‘Often the sales person has recommended a product/service based

on your current business environment. As your business grows, the


original specifications may not be adequate to meet your needs.’

– ‘It may be that your business load has changed and the

requirements for your system are now different. Let’s look at how

we could assess your current needs.’

– ‘Sales people do move around frequently as the market changes –

he is no longer here. However I can find the name of the new

sales person or the sales manager for you.’

The training programmes provided a valuable forum for the group to

discuss appropriate answers to these ‘sticky’ questions. The result was

that each engineer created a ‘toolbox’ of possible words and phrases to

use to manage those difficult moments of truth effectively. Some of

these ideas were transcribed and included in a FAQ manual (frequently

asked questions) so they had easier access to the data in those stressful

moments.______________________________________________________

Discussion points1. How far do service providers control the interaction with the

customer? To what extent do they use the BEST technique to

manage the moments of truth effectively?

B: How positive are they when they greet the customer at the

beginning of the interaction?

E: How many open-ended questions do they ask in ascertaining

customer needs? To what extent do they assume they know

the answer without asking the question first? To what extent

do they paraphrase the customer’s response?

S: How often do they generate more than one solution in

meeting customer needs? To what extent do they consider

the best solution from the customer’s perspective?

T: How clear are they at the end of the interaction as to who

has to do what by when?

2. How could you help your service providers to become more

aware of their own style? How could you help them adapt their

style to meet the customers’ needs?

3. To what extent have you identified the moments of truth that

service providers in your business face on a regular basis and

scripted responses to help them deal with these issues? How

could you begin or fine-tune this process?


SummaryIn this chapter we have introduced a model, with skills and techniques that

can be used to better manage the customer interaction and to realistically

set customer expectations.

◆ When managing the customer interaction, service providers

need to use the BEST technique.

B: Begin the interaction in a positive way.

E: Establish the customer’s real needs by asking questions,

listening and paraphrasing.

S: Satisfy customer needs reactively and proactively.

T: Thank the customer and verify the next steps.

◆ Every customer and service provider approaches the interaction

differently. However, we tend to assume that other people view

the world in the same way that we do. This can result in poor

communication, and the customer not feeling heard or being

satisfied.

◆ We briefly introduced the model of temperament as a tool to

understand and frame human differences, so that service

providers can adapt their style accordingly:

– Artisans respond in the moment, are fast-paced and want

concrete, tangible data about the product or service.

– Guardians respond in a methodical, structured way and want

data about experience, history and reputation.

– Rationals respond by using questioning and critical analysis,

and want abstract data and operating models.

– Idealists respond to the relationship element in the

interaction and want abstract data about benefits to people.

◆ Moments of truth are where the communication skills we have

discussed are applied to create a positive impression of the

company. Organisations can identify some of the critical

moments of truth that their service providers might face and

then help them script some possible responses for their

‘customer service tool bag’.


s we discussed in earlier chapters, service providers use

personal service skills to capitalise on moments of truth and

exceed customer expectations. However, effective processes and

procedures provide the foundation for smoothing or inhibiting the

customer interaction. Efficient service delivery systems appear

transparent to the customer. Poor systems create those ‘speed

bumps’ that necessitate personal intervention in order to satisfy

the customer requirements.

In this chapter we will describe how to establish effective service

standards and objectives, and then evaluate the performance of our

service delivery processes against these standards. For more

technically-based service delivery there is often a need for service

level agreements (SLAs), therefore we will provide an overview of

how to institute these within your organisation. Finally we will

review how our three profiled companies approached defining

their service standards and measuring the effectiveness of their

systems.

Service objectives and standardsOne of the most important facets in managing service excellence

is to define specific service standards and objectives, and then

measure and adjust performance to exceed these principles.

There are two main criteria we use to create our target of effective

service: objectives and standards. Objectives are concrete,

measurable outcomes from specific projects. Standards define the

minimal acceptable performance level within a specific category.

Let’s review each in a little more detail.

Effectiveprocesses and

measurementssmooth

the momentsof truth

CHAPTER 7

Implementing Effective Processes

A

If you don’t know where you are going, there is a good chance

that you will end up somewhere else!

Establishing service objectivesObjectives are concrete, tangible, measurable results or outcomes

that result from our efforts; they are the deliverables we produce.

There will be multiple objectives for any organisation to achieve,

within multiple key result areas (see Chapter 3). They tend to be

more project-focused.

Effective objectives need to be SMART:

S: Specific. Does it home in on a particular performance

component?

M: Measurable. What are the quantity, quality specifications, cost

and revenue, etc?

A: Aligned. It is aligned with the organisation’s vision/mission

and the customer service strategy?

R: Results-focused. Does it lead to a tangible result?

T: Time-based. Does it have a specific due date?

Example

Incorrect:

◆ To contact five prospects by 31 January 20XX.

This is a task, and it does not tell us what the result is or why we

are doing it.

Correct:

◆ To obtain one client with revenue of £XXXXX by contacting

five prospects for training services, by 31 January 20XX.

You can see that this is an effective objective because it is:

Specific: one client

Measureable: size of revenue

Aligned: with the vision

Results-focused: the outcome, not what you will do to get

there

Time-based: by 31 January 20XX.

◆ In order to differentiate between objectives and tasks, ask three

questions:

◆ What’s the result?

◆ What’s the benefit of taking this approach?

◆ Why are we doing this?


Implementing Effective Processess 143

◆ Too often we write tasks and not objectives, because tasks are

the things that we do. However, if there is no benefit, or result,

or reason why we are doing it, it is a task and maybe one of

those tasks we should not be doing at all.

◆ It is important to define and write down objectives for as many

aspects of service delivery as we can. Research conducted on

Yale students 20 years after they had graduated showed that 3

per cent were earning more money than the other 97 per cent

combined. The only difference was that the 3 per cent had

written down their objectives after graduation. There is

something about writing down objectives that affirms our

commitment to them, and keeps them in sight and in mind.

◆ The characteristic that gets missed the most when writing

objectives is the T. Most people state vague terms such as

‘within three months’. This is not specific enough – an actual

date needs to be set. If the worst happens, and you do not

succeed within the time frame, you can simply move the date!

◆ Sometimes it is hard to be specific when writing subjective

objectives. For instance, when considering improving

communication it’s hard to quantify this increase. In this case

standards can be used as the measurement device, eg number of

meetings, speed in returning calls, customer feedback, etc.

◆ Within each major objective there will be short-term ‘sub-

objectives’, normally set on a quarterly basis. Short-term

objectives are usually less than three months in duration, and

can often be part of another larger objective.

◆ Make sure you use words in your objective statements such as

ensure, increase, reduce, obtain, achieve, attain, raise, etc.

Customer service objectives

Examples of sample customer service objectives are listed below:

1. To raise customer satisfaction levels, as measured by the XYZ

survey, from 5.9 to 6.5 by 1 January 20XX.

2. To obtain feedback from 20 per cent of our registered customer

base, on our current range of services by 1 July 20XX.

3. To reduce number of errors in order processing by 10 per cent

to 5 per cent by 31 March 20XX.

4. To reduce the out of stock percentage to no more than 5 per

cent of orders by 31 December 20XX.

Tasks to create objectives

The tasks we have to complete, with the specific milestones (the

deadlines) can then be mapped out to achieve these service

objectives. Tasks and milestones for two of the sample service

objectives, that are within the Key Result Area (KRA) Customer

Service, are shown below.

Tasks and activities necessary to complete the objective:


KRA Objective(s)

Customer To reduce the number of errors in order processing

service by 10 per cent to 5 per cent by 31 March 20XX

KRA Objective(s)

Customer To obtain feedback from 20 per cent of our

service registered customer base in our current range

for services by 1 July 20XX

Number What? Who? When? Completed

1 Collate errors from SN 31 October

the last three months 20XX

2 Analyse errors and JP 30 November

create two optional plans 20XX

3 Organise team meeting DN 31 December

to make decision 20XX

4 Implement process ALL 1 January

improvements 20XX

5 Monitor performance DN January –

March

20XX

6 Make changes as JP 31 March

necessary 20XX

Tasks and activities necessary to complete the objective:

Exercise Creating a customer service objective with associated tasks and

milestones.

1. Using the format of the tables above, write one of your

customer service objectives.

2. Make sure it is SMART:

Specific

Measureable

Aligned

Results-focused

Time-based.

3. Ask yourself the following questions to ensure you are writing

objectives and not tasks:

What’s the result?

What’s the benefit?

Why are we doing this?

4. Then complete a tasks and activities chart (dates) to achieve

this.


Number What? Who? When? Completed

1 Update database JK 31 January

20XX

2 Decide 20 per cent of BA 28 February

users that will be 20XX

targeted

3 Design flyer/ CL 14 March

questionnaire 20XX

4 Distribute BA 31 March

questionnaire 20XX

5 Collate results CL 31 March –

14 June

20XX

6 Summarise results CL 30 June

20XX

Defining service standardsAs we discussed earlier, for workload that is continuous, with no

beginning and end, it can be difficult to write objectives that are

specific and measurable with a specific delivery date. Areas that tend

to be ongoing are communication, administration, etc. Also many

of the personal service skills we discussed in Chapters 5 and 6, and

the skills for resolving irate customer situations to be introduced in

Chapter 8, also require standards versus concrete objectives.

Examples of standards in relation to customer service as a

framework for performance could be:

◆ Reply to all phone calls within 24 hours.

◆ Reply to all e-mails within 48 hours.

◆ Queue times no more than 20 minutes.

◆ Resolve all level-one faults within 24 hours.

◆ Resolve all level-two faults within 48 hours.

◆ Always apologise at least once to irate customers.

◆ Use at least five open-ended questions in identifying needs.

◆ Paraphrase key data at least once per conversation.

◆ Always ensure that there is a contingency plan.

The purpose of these standards is to establish a minimum

acceptable performance level. Often these standards when

combined will result in an objective being achieved. For instance, if

you fix all level-one problems within 24 hours and level-two

problems within 48 hours, you would be well on the way to scoring

high on a customer satisfaction survey. (Always assuming you have

used the correct personal service skills with the customer!)

Defining the customer cycleThe next step in creating customer standards for your organisation

is to track the steps in the customer experience. By doing this you

can identify the standards and the processes required to smooth the

interaction at these points. We briefly discussed the steps in the

customer service cycle in Chapter 2 in ‘Where are you now?’

For instance, when deciding to stay at a hotel the service cycle

might include the following steps:

◆ Customer gathers data on the hotel from research on the Web, a

brochure or a travel agent.

◆ Customer may try to book via the Web or telephone.◆ Customer books and receives a confirmation.


◆ Customer calls for directions.

◆ Customer arrives outside the hotel.

◆ Customer checks in.

◆ Customer goes to the room.

◆ Customer tries to make a phone call/use e-mail.

◆ Customer calls room service.

◆ Customer organises and receives a wake-up call.

◆ Customer uses hotel bar/restaurant.

◆ Customer uses work-out facilities.

◆ Customer, during their stay, enters and leaves hotel.

◆ Housekeeping cleans the room.

◆ Customer uses room facilities: bathroom, TV, etc.

◆ Customer checks out.

◆ Customer leaves hotel.

As you can see, there are numerous opportunities to make or

break the service experience! Identifying these steps, in detail, and

then determining standards for them will result in a more

consistent meeting of customer expectations.

Examples of standards could be:

◆ Customer uses work-out facilities:

– clean towels constantly available

– all equipment working

– drinking water provided.

◆ Customer enters and leaves hotel:

– doorman to greet every customer with a smile

– staff to remember names of customers who stay more than

three days

– entrance lobby clean and free from litter.

◆ Housekeeping cleans the room:

– every room to be cleaned by noon

– refills to be provided every day

– card to be left in each room for customer comments.

Exercise Creating a set of customer service standards for your area.

1. Make a chart like the one below to recreate the steps in your

customer service cycle.

2. Brainstorm, for each step, some customer service standards for

areas that are ongoing and/or related to personal service

delivery.

3. Make sure they have a specific frequency associated with them.


Defining systems requiredOnce we have identified the steps in the cycle and the standards

for each, it is important to assess what systems and procedures

can facilitate service delivery to these standards. For instance, the

following service processes have been instituted in the New York

Palace Hotel to produce consistent results:

◆ When bellboys show new customers to their rooms, they

conduct a guided tour of the bedroom showing all ‘gadgets’ (and

there are quite a few), and describing the services of the hotel.

◆ Instead of the do not disturb sign (that inevitably gets lost or

moved), there are electronic do not disturb signs centrally

controlled from the side of the bed.

◆ If housekeepers are unable to perform the nightly turn-down

service because the do not disturb light is on, they will call the

room and offer to return later.

◆ Nightly turndown service includes restocking the ice bucket.

◆ When calling for information about restaurants within the

hotel, the names and room numbers of the customers are

recorded. When customers arrive at the restaurant and give

their names, it is then possible to greet them with ‘You called

earlier, didn’t you?’ (a personal service touch facilitated by a

material service process).

Exercise Evaluating your customer service delivery systems.

1. Make a chart like the one below to recreate the steps in your

customer service cycle.

2. List the standards alongside each.

3. Now evaluate the current systems you use to deliver these

standards: how effective are they in meeting customer needs?

4. Now also consider if there are any systems that could be added


Steps in the customer Service standards Frequencyservice cycle

to facilitate meeting customer needs more smoothly.

5. What systems exist that may be inhibiting service delivery:

unnecessary steps in processes, redundant procedures, etc?

6. What changes will you make to your service delivery systems to

exceed customer expectations?

Service level agreements (SLAs)In organisations that are heavily dependent on internal service

working effectively in order to meet external customer needs,

there is often a need for service level agreements (SLAs). SLAs

specify, in detail, the responsibilities of all internal departments to

meet external customer needs. This section will cover:

◆ the purpose of service level agreements (SLAs)

◆ why SLAs are important

◆ the benefits of implementing SLAs

◆ the prerequisites for SLAs

◆ the critical elements in the SLA process

◆ developing SLAs

◆ major attributes of SLAs

◆ measuring performance against the SLAs

◆ reporting on SLAs.

Purpose of SLAs

The purpose of SLAs is to:

◆ Establish two-way accountability for service.

◆ Create levels of service that are negotiated and standardised.

◆ Document service levels in writing with, if applicable, penalties.

◆ Clearly define criteria for service evaluation.

◆ Provide a basis for improving customer satisfaction levels.

◆ Standardise methods for communicating service expectations.


Steps in the customer Service standards Systems required/service cycle present

Why are SLAs important?

It is vital that all groups involved in the service delivery process

understand the customers’ expectations/requirements and that

they can meet or exceed them. An SLA is one vehicle to ensure

that all groups understand the requirements of the customer and

the marketplace.

Benefits of implementing SLAs

1. SLAs establish two-way accountability for service. The SLA

clearly states expectations and service to be provided by each

party.

2. All groups involved in service delivery negotiate, understand

and mutually agree on what is required to meet the customers’

requirements, so there are no surprises.

3. Service levels are documented in writing so all groups have

concrete, well defined expectations and goals for service, which

can be consistently repeated.

4. The criteria you and your customers use to evaluate service are

also clearly defined.

5. SLAs serve as a foundation for improving service levels on a

continual basis. Once you have accurately defined your current

level of performance, you can set realistic goals for improving

service and continually measure performance against these

goals.

6. SLAs are the standard for communicating service expectations.

These documents help minimise frustrations and bring clarity

to a relationship. An SLA stated, ‘These are the support levels

our service organisation can provide, and this is how we have

committed to support the customer.’

Prerequisites to SLAs

There are three prerequisites that an organisation and SLA

implementers must meet before developing SLAs. These

prerequisites are absolutely paramount to the success of the SLA

process. The prerequisites are:

◆ Your company must have a service culture before your SLA

process can be effective. Companies that have customer service

cultures are those that truly place the customer’s needs first.


One indication of a service culture is that the organisation

possesses a thorough understanding of customer needs as well

as customer perceptions. This requires the buy-in of all

executive managers to the service culture concept.

◆ The SLA must be aligned with the company’s vision and

strategy so all the organisation’s staff can understand the reason

the SLA is in place and rally towards its common goals.

◆ The final prerequisite is that you must commit to the SLA

process and implementation. It will not be easy but you must

see it through.

The critical elements in SLAs

◆ Determine the parties involved in the process.

◆ Identify and determine the service elements to include in the

SLA, such as:

– products covered/supported

– level of support and caller responsibilities

– hours of coverage and operation

– responsibilities

– severity classifications

– escalation procedures

– resolution objectives

– other organisational procedures.

Developing SLAs

There are five key points in developing SLAs:

1. Understand your customers’ business needs and goals.

2. Define the SLA requirements for each group.

3. Choose the format of the SLA.

4. Establish SLA work groups to develop the SLA within set time

lines.

5 Hold the meetings and develop the SLA.

Major attributes

Here are the major attributes that must be considered when

developing an SLA:

1. Define the product, responsibilities and services to be provided.

2. Establish the manner in which the products and services will be

delivered.


3. Establish coverage, response and resolution standards to be

achieved.

4. Establish measurement criteria.

5. Establish reporting criteria.

6. Negotiate and determine cost of delivery.

Measuring performance against the SLA

You’ll need to establish key performance measurements, who to

report to and how to report against the SLA. When deciding what

and how to measure consider the following points:

◆ The measurement must meet your customers’ requirements so

ensure you discuss their expectations with them. Work with

your customers to establish key performance measurements

that are aligned with your service delivery process. Some

example performance measurements for a high-tech support

centre are:

– total calls received

– call abandoned rate

– response time

– hold time

– resolution time by problem severity

– problem backlog by severity.

◆ When identifying the key measurements ensure they have a

direct relationship to the process and that you can obtain

precise information about the process performance. ‘If you

can’t measure performance, don’t bother reporting anything.’

◆ You must also decide the correct frequency of measurements.

While once a month may be sufficient for some measurements,

once a day may be required for others.

◆ Measuring performance without a strong link to process

improvement is a waste of everyone’s time.

◆ The manager must be able to specify why each measurement is

needed, how it will be used and how it may be improved. For

example, if the customer support centre currently logs a 30 per

cent first-level call resolution rate, that means that 70 per cent

affects the productivity of other employees, managers and

directors. If you establish a first-level resolution of 70 per cent

and measure against it, you can demonstrate that you have


positively impacted the productivity of these employees as well

as developing your own staff and their effectiveness.

Reporting against the SLAs

Once you have established your key measurements you then need

to set up your reporting process. Four guidelines for reporting

against your SLA are:

– Establish precise reporting.

– Establish frequency of reporting.

– Identify recipients of the reports.

– Establish an effective review and continuous improvement

process.

◆ If the reports are to be truly effective they must be distributed

to the correct audience and regularly reviewed by people who

can have a direct influence on the success or failure of the SLA.

◆ Don’t underestimate the value of reporting against these

measurements. The whole success of the service delivery process

is centred around the manager’s ability to fully understand what

is happening at each stage, articulate this and be able to make

adjustments or process changes based on this information.

◆ Measurements and reports can tell managers information such

as:

– when additional operators may be required to handle

incoming calls

– the products that require a disproportionate share of

support

– which staff to reward based on good performance results

– which staff require coaching based on poor performance

results

– what results can be used by marketing in product

advertising

– additional training classes needed

– writing performance reviews.

Exercise Do you need SLAs?

1. To what extent does service to the external customer depend on

receiving service and support from internal departments?

Score 10 if this is critical, 1 for somewhat important, 5 for some

of the time.


2. To what extent do you receive what you need from internal

customers when they say they will supply it?

Score 10 if this happens rarely, 1 for all the time, 5 for some of

the time.

3. How customer-focused is your organisation?

Score 10 if completely customer-focused, 1 for product-

focused, 5 for in the middle.

4. How effective are your performance measurements currently?

Mark a 10 if measurements are fairly current and accurate, 1

for no measurements, 5 for in the middle.

Now total your score.

◆ If you rated between 30 and 40: there seems to be a high need

and the requisite support to implement SLAs, in which case

begin the process outlined in this chapter or refer to the other

publications listed in the bibliography.

◆ If you rated between 20 and 30: there seems to be a certain

need and medium support to implement SLAs, in which case

begin the process outlined in this chapter or refer to the other

publications listed in the bibliography.

◆ If you rated under 20: there seems to be either little or

inadequate support to implement SLAs. Instead, track your

customer complaints closely on an ongoing basis to assess

whether or not you should re-evaluate this in the future.

Case study: Cleanworks implements effective processes

As we discussed in earlier chapters, Cleanworks mapped out the steps in its

service delivery cycle. They are (as described in Chapter 2):

◆ Solicit customer business by advertising, flyers and other promotional efforts.

◆ The customer calls the service centre to arrange pick-up of laundry/dry

cleaning.

◆ The van driver picks up the laundry and dry cleaning.

◆ The laundry and dry cleaning arrives at the plant and is unloaded.

◆ The laundry and dry cleaning is processed at the plant.

◆ The laundry and dry cleaning is returned to the customer.

◆ The customer receives a bill once a month.

They focused almost entirely on defining overall standards for the service

offered and then specific standards for each of the points of contact for both

material and personal service. A sample is shown in Figure 16.

These general standards would then be filled in with more detail, when the



Stage in the service Material service Personal servicecycle standards standards

Overall differentiators • Full service • 100 per cent guaranteed• Service open seven days a • Personalised,

• National branding week: up to 16 hours a customised service• Individualised day • Proactive in meeting

customer service • Standard turnaround customer needs• Efficient delivery and within 24 hours • Simplicity of process

distribution systems • Free pick-up and • Minimal/professional• Integrated delivery interaction

information technology • Free phone number for • Friendly, effective,• Unparalleled customer service staff

cleaning and care • Emergency hotline for • Clear customer servicetechnologies immediate assistance vision and values

• Centralised • Convenient Internet • Warrantiesoperations access

Marketing • Strong brand identity • Statement of customercommunications • Quality flyers service philosophy and

• Mailing list selection values• Clear articulation of • Emotional buying

unique selling factors emphasised suchproposition as safety, security, trust

• Consistent branding • Frequent usage• Signage and ‘look’ incentives• Wide awareness • Preferred customer

through intense cardscommunications (radio, • Door-to-doorTV, newspapers, etc) communications

• Sampling and trail • Sponsorship of localtechniques events

• Incentive programme• Special offers• Give-aways

Call centre • Response time – one • Excellent interpersonalminute to answer the skillsphone • able to articulate

• Number of people in clearly the benefits of thecall centre service from the– Hours customer’s perspective– Numbers of • Knowledgeable of the

people per hour to productdeal with peak times • Trained in business

• Database to track developmentinquiries to include: • Courteous and polite– Laundry • Use of name at least



requirements three times in the last– Household interaction

size Knowledgeable about– Other services customer requirements

used with access to database– Approximate information

amount spent on • Proficient in using theother monthly ‘systems’services • Doesn’t sound ‘busy’

– Rent or buyhome

– Own a washerand dryer

• Scripts:– Asking for the

sale– Gathering

information• System set up to

follow up after initialinquiry:– Flyer– Phone call

Pick-up of laundry/dry • Choice of face-to-face • Greetingcleaning or anonymous • Customer interaction

pick-up skills• Flexible around • ‘Pacing’

customer’s schedule • Ascertaining customer• 80 per cent scheduled satisfaction: always ask

distribution: 20 per cent on call ‘Is everything OK?’• Van design reinforces • Courteous

the brand • Well-groomed• Availability of vans • Convenient to• Flexible routing of customer

vans • Regular routes enables• Seven-day access on the customers to build

telephone to call relationships – greatercentre customer loyalty

• Integration of IT forcustomer preferencesand routes


company is closer to its launch. Building such a general list of standards also

helped the company to isolate its original goal of ‘excellent customer service’ into

its specific targeted, manageable components.

The organisation also recognised that it would need simple SLAs between the

call centre and van drivers, and the processing plant. As the individuals in vans

and the call centre had direct contact with the customer, it was important for

them to have specific data to help them manage their customer expectations

effectively. For instance, if there was a change in delivery time or place, the call

centre needed to understand the lead-time the dispatch centre required for the

vans to meet that new time. These agreements were not complex, but were

established immediately to smooth the customer interaction.

Case study: Kitchen Barn implements effective processes

Kitchen Barn already had specific standards for both its material and personal

service delivery. The standards for personal service delivery were based on the

content of the GUEST approach (described in Chapter 5) and included such

things as:

◆ Every customer to be greeted within ten seconds of entering the store.

◆ Every customer to be asked at least five open-ended questions.

◆ Every customer to be offered an additional related or non-related item.

Kitchen Barn discovered, when it analysed its current business performance

that, although it was gaining new customers in different markets, there was

attrition from its current customer base. As we know, it costs a lot more to get

business from new customers than it does to generate more business from

existing customers. Gary decided he wanted to institute a new service objective

which was: ‘To increase sales to existing customers by 10 per cent by 1 January

20XX, from £ . . . thousand to £ . . . thousand.’


• 18-hour availability forpick-up, 6 am to midnight

• Van arrives reliablyand consistently aroundcall times – within 15minutes?

• Professional dress

Fig. 16. Sample: setting standards.


To achieve this objective he instituted a clientele programme, to

encourage existing customers to return. Components of this programme

included:

◆ Each Sales Associate had a clientele book.

◆ Each Sales Associate, in every store, had to add three new names a week to

this clientele book. To this end, specific scripts were created to be used at

check-out to ask new customers for their permission to be included in this

book.

◆ Customers entered in this clientele book were also centrally recorded

on a database, and received flyers once a quarter describing new

offerings.

◆ Stores held special ‘evenings’ for clientele customers, either before sales or to

show new merchandise.

As a result of this effort, sales to existing customers actually increased by 20 per

cent, while new customers also continued to grow. A success all round, aided by

a clear objective and specific standards.

Gary completed the SLA assessment, but decided that as the cooperation

between the warehouse, the buying office and the stores was working pretty

well, SLAs were not required. Often, retail organisations do not require such

processes because of their innate focus on the customer.

Case study: Internet Express implements effective processes

Setting objectives

The Internet Express management team created the following objectives using

the SMART criteria for the support centre:

1. Raise customer satisfaction levels with frontline support from the current level

of 65 per cent to 85 per cent as measured by the monthly after-service

surveys by developing and implementing a set of problem-handling and

escalation procedures, by 1 April 20XX.

2. Ensure the average speed of answer (ASA) is under three minutes for each

product queue, as measured by the weekly automatic call distributor (ACD)

reports, by establishing and implementing a call queue monitoring,

measurement, improvement and reward process, by 30 September 20XX.

3. Raise the first-call resolution rate from the current level of 60 per cent to 80

per cent as measured by the service call manager (SCM is a brand of call

and problem tracking system) monthly performance reports, by re-engineering

and improving the current problem handling process, by 30 September

20XX.

4. Reduce the backline support unresolved problem queue by 30 per cent, as

measured by the SCM monthly performance reports, by establishing and

implementing an escalation process and SLA with the development groups by

30 September 20XX.

5. Achieve a 90 per cent rating of all known solutions entered into the

knowledge base (an internal database used to record and track down

problems and fixes) as measured by the SCM to Primus Link Report by 1

August 20XX and to 100 per cent by 1 November 20XX.

The individual managers then met with their respective teams to further

define individual SMART objectives with specific tasks and milestones to achieve

them.

Defining service standards

The senior management team reviewed existing customer satisfaction surveys and

talked with their customers regarding the specific support centre performance

standards. From this work they developed a complete set of standards to cover

the key areas of the support centre. These standards centred on three key

areas:

◆ Service delivery including responsiveness to service calls and problem

resolution.

◆ Service culture.

◆ People motivation and skills.

The management team then worked with their supervisors, product leads and

analysts to develop the performance standards. Some examples of these are

shown in Figure 17.

Service culture performance standards

The management team worked very closely with the technical phone analysts to

develop these service standards in four main areas.

◆ Call handling: the teams developed a structured call handling and call

feedback process to cover the beginning of the call, resolution of the call and

ending the call. The calls were then randomly audited each week and a

feedback summary provided. As described in Chapter 6 it included standards

such as:

– asking at least three open-ended questions

– summarising the data at the end of the call

– paraphrasing at regular intervals, etc.

◆ Phone time: provide efficient service to customers as measured by average

weekly phone time of more than 30 hours.



◆ Dependability: adhere responsibly to the schedule as measured by ontime

arrival and readiness to take calls, timely return from lunch and breaks and

adequate notice of absence.

◆ Continuous improvement: capture all relevant data by logging 100 per cent of

all calls into SCM and linking 75 per cent of the calls into the knowledge

base. Additionally add a minimum of two known solutions to the knowledge

base per week.

People motivation and skills

In this area each analyst completed the skills matrix and then developed their

individual training plans in consultation with their supervisor and manager. The

analysts were then measured on the number of classes completed and the skills

matrix updated.

Senior analysts and analysts with specialised skills then gave technical talks on

various areas of interest to the team and the usefulness of the talk was ranked by

the team members.

Performance Source Standard Measurementstandard

Average speed of ACD Less than 3 minutes ACD reportsanswer average

Calls abandoned ACD Less than 5% ACD reports

Longest wait time in ACD 5 minutes ACD reportsqueue

% first call resolution SCM 80% # closed TARS withone attached calledactivity/total closedTARs

% problems resolved SCM 15% # TARs closed/totalby second-level TARs receivedsupport

Backline unresolved SCM Monthly rolling SCM problemproblem queue average less than 30 resolution reports

Fig. 17. Defining service delivery performance standards.

Service Level Agreements (SLAs)

The organisation invested in creating formalised SLAs. Teams were created from

the support centre and engineering, with the support of the vice presidents of

each function to negotiate and define specific agreements around fixing severity

one and severity two problems.

Below is an overview of the sections contained in the SLA between the

Internet Express support centre and the Backline support group.

The presence of these SLAs gave all the teams involved greater insight into the

issues they faced, and smoothed the entire problem resolution process. ________


PurposeThe purpose of this document is to record the guidelines for response time, escalations, statusupdates and resolution goals between the Internet Express support centre and the Backline supportgroup.

ScopeThis SLA refers to the support of the Internet Express Software Product VSS Release 2.0 only. Thissoftware is a 7×24 supported product and requires response 365 days per year.

DefinitionsProblems will be escalated to the Backline support group based on their severity. The followingproblem severity definitions have been agreed.

Severity Definition

Severity 1 A complete system failure or the loss of more than 40 per centcapacity of the software system

Severity 2 A system interruption which impacts more than 60 per cent of thesoftware system

Severity 3 An intermittent problem which causes minor impactSeverity 4 A minor problem such as documentation issues, minor

feature updates, etc.

Escalation methodAll escalations to the Backline support group from the support centre will be in the form of either a page or voicemail, depending on the severity of the problem, and the transfer of thecorrectly completed technical assistance requests (TARs) to the Backline support service call manager(SCM) queue.

Response timesThe Backline support escalation co-ordinator will respond to the support centre product lead withacknowledgement of receipt of the escalation within the times listed below. Failure to respondwithin these timeframes will result in an escalation to the Backline support and support centremanagers.

Discussion points1. What service objectives could you define for your

organisation/team/group? What specific areas would produce

improvements in customer satisfaction levels? How can you

ensure that the objectives are specific, measurable, aligned,

results-focused and time-based?

2. What specific tasks or activities need to take place in order to

make these objectives a reality? How will you prioritise

between multiple objectives and tasks?

3. In what areas of your business, due to the ongoing nature of

the activity, do you require service standards? How can you

ensure that these service standards are accurate and meet


Severity Escalation method Response time

Severity 1 Page to the escalation 15 minutesco-ordinator

Severity 2 Voicemail 4 hoursSeverity 3 Voicemail 2 daysSeverity 4 Voicemail 5 days

Resolution objectives

Severity Temporary fix or Permanent fixacceptable workaround

Severity 1 90 per cent in 8 hours 3 days100 per cent in 24 hours

Severity 2 5 days 10 daysSeverity 3 15 days 30 daysSeverity 4 60 days Next release

Status updatesFor severity 1 problems, status updates on progress will be provided between both groups on a two-hour basis until a temporary fix or acceptable workaround is applied, and then on a daily basis untila permanent fix is available.

For all other severity problems there will be a weekly problem status review meeting between thetwo groups where the following items will be discussed:• Review of all outstanding problems.• Assignment and tracking of actions items to drive resolution of open problems.• Assignment and tracking of root cause analyses to prevent recurrence of any customer-base

impact problems.• Review of reports detailing performance of both groups and their record in meeting the resolution

objectives.• Review of the problem-handling process to provide a continuous improvement closed loop.

customer needs? What performance objectives do these

standards help to meet?

4. To what extent have you mapped your service cycle and

created standards for each step? What steps are hard to

measure? Which steps are critical for customer satisfaction to

attain?

5. What additional service processes or systems would help to

achieve these standards? Which service processes appear to be

hindering or slowing down service to the external customer?

What can you do to manage your service delivery processes on

an ongoing basis?

6. To what extent do you need SLAs in your business? How

dependent are your external customers on internal

departments cooperating among themselves? How

supportive is the entire company culture around customer

service?

7. If you do require SLAs, to what extent are these agreements

documented and supported by all? What steps could you take

to update or raise buy-in to these agreements? Which

components are not working effectively?

SummaryIn this chapter we have introduced a framework for ensuring that your

processes support the delivery of service to your external customer

◆ We introduced the importance of setting SMART objectives

that clearly specify the results that need to be achieved in

certain areas. From this basis we introduced a planning

methodology using tasks (things that have to be done) with

associated milestones (due dates) to achieve these

objectives.

◆ In some areas, where the nature of the tasks is repetitive or very

intangible, the importance of defining service standards was

outlined. These standards could be applied to other personal

and material service, and could be based around the steps in

the service delivery cycle. Creating these standards helps to

make the concept of exceeding customer expectations more

concrete.

◆ When these standards are clearly defined, it is often possible to

add systems to help adhere to the standards and/or re-evaluate


current systems that are inhibiting service delivery.

◆ In specific businesses, SLAs are required to clarify the

responsibilities of each internal service support to meet external

customer needs. Defining SLAs requires the input of all groups,

and support from the company and senior management to

make them a reality. Types of organisations that require SLAs

are technical support functions, call centres, customer service

departments, etc.

◆ SLAs help to accurately measure and report service

performance in critical categories, and act as a management

information tool. It is important that SLAs remain current, and

therefore they need regular updating.


s we discussed in Chapter 2, instituting continuous

improvement is the fourth leg of the service delivery model.

For this subject we will break down this process into short-term

recovery, to be covered in this chapter, and then examine long-

term process improvements in Chapter 9. We will begin by

discussing how we can ensure that our customers have ways to

communicate their issues to us. We will then describe recovery

and its importance as a service management tool. Next we will

look at how we manage short-term recovery by successfully

defusing angry customers using the CLEAR technique. Using this

technique, we will succeed in calming our customers and obtaining

relevant data for improving both personal and material service

processes.

Seeking customer complaintsThe starting point for many of the continuous improvement

initiatives can come from listening and responding to customer

complaints. It is therefore necessary to ensure we provide systems

to solicit regular feedback from our customers, and that we make

it easy for them to complain to us. Ideas that can be implemented

are:

◆ Suggestion boxes.

◆ Feedback forms at important steps in the service delivery cycle.

◆ Providing a customer service hotline.

◆ Personal interaction: either face-to-face or via the telephone.

◆ Publicising names of management who are available.

Examples of these systems in action are:

◆ ‘How are we doing?’ forms at a restaurant provided with the

bill.

◆ Special phone numbers in hotels for customer service issues.

◆ Plaques that state ‘We wish to keep you as a customer. If there is

When a customercomplains, it

means they wantto continue to dobusiness with us

CHAPTER 8

Dealing with Customer Complaints

A

anything that has not been to your satisfaction, please contact

me . . . (name of Duty Manager).’

◆ Telephone calls after a car service to ascertain the customer’s

satisfaction with the service provided.

◆ Always providing addresses and names for written

communication.

◆ User forums to brainstorm design ideas for new products.

For your business, think about how you currently manage

complaints, and think about one additional action you could take

to encourage your customers to tell you what is not working for

them. This will also help you get positive feedback on what is

working so you have the chance to reward specific star

performers. It also lets you know what elements of your service

provide the customer with the greatest value.

Defining recoveryRecovery is defined in the book Service America as ‘the ability of

front-line/customer-contact people to somehow make things right

for the customer when they have somehow gone astray.’

Too often service providers regard customer complaints as a

nuisance, take them personally, or deny all knowledge (‘It’s not my

fault, it’s the process’).

As you remember from the customer service quiz in Chapter 1,

customers who don’t care simply take their business and walk

away. They don’t tell you. But they do tell lots of other people on

the way! Customers who do complain can prove to be more loyal

customers, if their complaints are handled in a satisfactory way. At

the same time, they can often provide you with valuable feedback

on something that could be wrong with your service delivery

process, thereby giving you an opportunity to change or improve

a system.

Unfortunately, many opportunities are missed because the

‘moments of truth’ with irate customers are not managed

effectively, resulting in the possible defection of a customer to


In fact, every time a customer complains they are really telling

you that they want to continue to do business with you.

Dealing with Customer Complaints 167

another company, and the definite loss of relevant business data.

In order to recover successfully, we will introduce you to the

CLEAR technique that can help you manage these thorny

interactions with irate customers.

You said what?Dealing with challenging customer situations is a part of the

service provider’s job. During these situations, when emotions are

running high, it can be very easy to say things that do not

represent the correct image and objectives of the company.

Some examples of true statements made to customers in the heat

of the moment are:

◆ ‘Oh we don’t support that here!’ – to a company that has just

signed on for a substantial monthly service contract! What the

engineer meant to say was that another group supported those

products.

◆ ‘We only have one person who knows this software in our

group and she’s on vacation.’ This may be the truth, but there

are certainly more tactful ways of stating it.

◆ ‘This new call-tracking system is so bad I have to enter

everything twice, so you’ll have to repeat yourself.’ Often, when

internal systems are changed and users are not happy with the

change, the person who suffers the most is the customer. When

introducing changes it could be helpful to ensure that our

internal employees are not being ‘transparent’ with the external

customer.

◆ ‘I’m sorry but Joe can’t talk with you at the moment, he is

working on a more important problem.’ One word alone can

colour the entire flavour of the message, particularly if this

statement is made to a Chief Information Officer of a Fortune

500 company, as was the case with this statement.

◆ ‘I can’t get to you for another three days, you’ll just have to

wait.’ Even if this is the case, a different way of stating the fact

would be preferable.

It is important that service providers manage these moments

of truth without saying anything that is inappropriate,

because this can colour the customer’s perspective of the

overall service that the company provides.


◆ ‘I can’t guarantee delivery to you because the factory in Mexico

is always letting us down – there’s nothing that I can do!’ Again,

the customer is being subjected to the failures in the internal

workings of the organisation. Not necessary, nor relevant.

These are just a few examples of what not to say. Many of these

statements not only caused a rapid escalation in the intensity of

the problem, but also provided inadequate service levels; a loss in

two ways. During the next section we will give you some tips and

techniques to deal with difficult situations and to paint the best

picture, without telling lies.

The CLEAR techniqueUnderstanding and practising the skills in the CLEAR technique

will help you to work through even the most challenging

situations. Again we have used an acronym as a tool for retention.

However, remember that the steps do not always happen in

sequence – life would be much easier if they did, but people are

rarely logical in this process.

The steps in the CLEAR technique are

C: Calm your emotions

L: Listen actively to the customer

E: Empathise with the customer

A: Apologise/Acknowledge the customer situation

R: provide reactive and proactive Resolution.

In most situations there is a temptation to jump straight to the

resolution stage. After all, the customer is upset with the situation

and if you fix it, they’ll be happy – right? Wrong!

Even if the problem is resolved, the customer might feel

unacknowledged or unsupported in the process. Here’s a story to

illustrate the point. We were born in the UK, but have lived in the

States for 12 years. For our first Christmas, as we had no other

extended family with us in the USA, we decided to go out for

Christmas Day dinner with our two children.

The following are the key points:

◆ When we arrived at the restaurant the place looked like a zoo –

people dashing around, with no apparent structure to the

activity.

◆ We ordered our dinner – it arrived an hour later and it was

cold.

◆ When we asked for a hot meal, the server took away the plates.

She returned a little while later with plates that had obviously

been zapped in the microwave: the outside was steaming hot,

the inside lukewarm and there was this delightful congealed

rim on the outside of the plate!

◆ We asked to talk to the manager, who, when she arrived at the

table, leaned over us and said, ‘So, do you want a free meal?’

◆ Obviously we did not expect a free meal, but if she was going to

offer, of course we will accept. So we had a free meal for

Christmas.

◆ Were we then satisfied with the experience? No. Why not? We

felt we had not been listened to or treated with respect. In fact

the restaurant lost out two ways. Not only did they lose a

customer, but they lost the money from all four dinners as well.

◆ We have since told many other people – and surprise – the

restaurant chain has gone out of business. Not our work alone

I’m sure, but we certainly made a contribution.

The situation could have been resolved successfully if the

manager had taken the following steps.

◆ She needed to calm her emotions. Obviously she was frustrated

she was working on Christmas Day: she probably had all

reserve staff (who wants to work on Christmas Day after all?)

and the restaurant was much busier than she expected. These

factors caused her to be irate before she even heard about our

problems. Our meal seemed to be the final straw for her. If she

had taken some time to control her emotions, she would have

been more able to assertively manage the situation.

◆ She then needed to listen actively to our description of the

situation. By asking open-ended questions, listening actively

and paraphrasing, she probably could have found out a little

more about the importance, to us, of this Christmas dinner –

questions such as ‘I hear you have had some problems with

your meal, tell me a little more about them’, ‘What other

problems have you experienced?’ etc. If the questions had been

effective I probably would have told her not only that the meals

were cold, but that this was our first Christmas away from

home, and that we really had wanted to make it special by

eating at this restaurant.

◆ She then had the opportunity to empathise with us. While she


could have demonstrated empathy using body language, she

could also have used a couple of empathy statements, such as ‘I

can understand you feeling frustrated because the food was

cold. It sounds as if we have really contributed to upsetting

your first Christmas away from your homeland.’

◆ She could then have apologised to us, not using my least

favourite apology from restaurants: ‘I’m sorry but we’re busy’.

Of course they are busy – that’s why they are called a

restaurant! Rather, ‘I’m sorry the food and the service has not

met your expectations.’

◆ Then she could have asked me for my ideas for a suitable

resolution: ‘What would it take to meet your needs?’ We

probably would have said: ‘A hot meal and a free dessert would

be great’, a lot less than the amount she actually gave.

So let’s look at each of these steps in some detail.

C: Calm your emotions

The first factor you have to address when customers are irate is

managing your emotional response. We can feel defensive,

aggressive, impatient, annoyed, upset, to name just a few

emotions. If you can manage your emotions, calming the

customer and moving on to a successful ultimate resolution

becomes more likely.


+

Logic

–

High emotions Calm emotions

Fig. 18. Reasoning and emotion graph

As you can see from the graph in Figure 18, the more emotional

you are the lower your level of logic is. Even if the resolution is the

ideal, the customer won’t hear it because they are still upset.

Conversely, when the customer’s emotions are low the logic is

high, and the customer is more likely to accept the resolution.

So the first step in managing irate customers is to calm your

emotions, so that you can use logic and assertive communication

to resolve the situation. Some ideas that have helped calm

emotions are:

◆ Take a deep breath (being careful not to exhale with a big

sigh!).

◆ Mentally step back and look at the big picture.

◆ Think about the seriousness of the problem. Often problems

are not as severe as they appear when we are upset. A seminar

participant used the following analogy in terms of severity –

was it life threatening, a permanent injury, a broken arm, a cut

or a graze? Obviously these are our categories to help us put the

problem into perspective – not to be told to the customer! The

customer would not respond well at this stage to ‘Don’t worry,

it’s not life threatening!’

◆ Realise that the customer is not directly angry at you: they are

probably angry because of the situation, or because of

something else going on in their life and you just happen to be

on the receiving end (the traffic was bad, the cat threw up on

the carpet, their boss just moaned at them, etc).

◆ Roger Ury in Negotiating to Yes calls this process ‘going to the

balcony’: not to jump off, but to put the issue in its broader

context.

◆ If necessary and possible, buy yourself some time: ‘I need to

research this – let me call you back at 5 pm.’ Then make sure

you follow up at or before the time stated.

L: Listen actively to the customer

The next three steps in the CLEAR Technique – the L, E, A – are

geared towards calming/managing the customer’s emotions. Only

when the customer has also calmed down is it possible to resolve

the situation. In order to manage the customer’s emotions, you

have to be aware of what those emotions are. We do this by using

active listening.


Stephen Covey in The Seven Habits of Highly Effective People

says: ‘Most people do not listen with the intent to understand;

they listen with the intent to reply.’

According to Covey, there are five levels of listening:

◆ ignoring the other person: not listening at all

◆ pretending to listen: using yeah or uh-huh without sincerity

◆ selective listening: hearing only certain parts of the

conversation

◆ attentive listening: paying attention to the words that are being

said

◆ active listening: listening with the intent to understand.

Active listening is imperative when the customer is irate. It

means you listen with your ears, your eyes and your heart. You

listen for content, for feeling and for meaning. You listen for

behaviour, using your right and left brain, your intuition and your

senses. You listen for congruence between what you hear, what

you see and what you sense. You listen for the facts/content and

the emotion behind the content.

Customers are explaining the impact of the problem on their

business when they are talking, not when they are listening to you.

As you listen to the customer, you need to identify:

◆ the content or the reason why they are feeling dissatisfied with

your product or service

◆ the feeling or emotion they are expressing.

Example from a major airline

For instance, if I said ‘I can’t believe my suitcase is not on the

same plane as I am.’

◆ The content or the reason why I am dissatisfied is obvious: I do

not have my bag.

◆ The feelings or emotions I might be experiencing are broad and

could include:

– worry that I might never see the possessions in that suitcase

again

– annoyance over the hassle of getting the money back and

filling in numerous forms in order to do so

– frustration because of the inconvenience

– tiredness because transatlantic flights are exhausting.


As you can see, understanding the content is the easy part:

recognising the possible range of emotions is more complex. Of

course this is a regular occurrence for a major airline, so to them

it’s no big deal: 99.9 per cent of people get their bags back – why

are you upset?!’ This is where the disconnect can start between the

service provider and the customer.

Exercise Active listening exercise. We will be using the same three scenarios

to try out the skills introduced in the L, E, A, R. The purpose of

this approach is to practise each skill, separately from the others,

before you put them all together. Obviously in real life all four

skills could be included in one statement, as you will see.

For each customer statement, identify both the content (the

reason the customer is feeling dissatisfied) and the feelings (the

range of emotions) being expressed. The answers are at the end of

the section.

Customer situation 1

This is the third time you have promised delivery of these

products and you have missed the dates.


I have been waiting 30 minutes and now you are telling me I am

in the wrong queue and that I will have to wait again.


I can’t believe you consider yourself an enterprise server company!

Your system is the most unrealiable I have ever used.

In each of these situations the content, or the reason the

customer is upset, is fairly easy to fix. However, if the problem is

fixed without the customer feeling heard, the resolution will not

be viewed as acceptable. You may have fixed the problem, but you

have not fixed the customer.

AnswersCustomer situation 1

Content: Missed/unrealisable shipping dates.

Feelings: Customer feels let down, doesn’t know if they can trust

what you say. They may also be subject to retribution inside their

company for not doing their job well enough.



Content: Waiting in the wrong queue.

Feelings: Frustration, tiredness, concern that it is going to take

even longer than they thought to obtain a resolution, probably

feeling overloaded with work.


Content: The system is not performing to expectations. The

system appears unrealiable.

Feelings: The customer is frustrated, and concerned that the

system may never perform to the standard required. There may be

additional concerns about coping with workload if this is the case.

E: Empathise with the customer

In active listening, we identified the content or reason the

customer was dissatisfied and the emotions or feelings being

expressed. Now we have to empathise with the customer. Empathy

is defined as the ability to put yourself in the other person’s shoes, to

understand their frame of reference. It is not the same as sympathy.

Sympathy means being involved in the other person’s emotions,

where you might lose the objective perspective.

In most cases it is relatively easy to feel empathy for our

customers when they are upset, especially when the customer’s

business or personal relations are adversely effected. Reasons why

customers are upset are when:

◆ their expectations were not met

◆ their expectations were unreasonable

◆ they have had an all-round bad day.

Demonstrating the feeling of empathy for the customer is

important. If we are face-to-face with the customer empathy is

somewhat easier to show. Using body language such as nodding,

having a sympathetic expression, leaning towards the customer,

etc. can all indicate concern. It is important, however, to express

empathy verbally. On the phone this is obviously even more

fundamental.

The way we do this is by using specific empathy statements

expressed in a tone that indicates sensitivity to the customer’s

feelings. It is important to tell your customer directly, and

sincerely, that you realise what they are going through.


Empathy technique

The technique we will use is to:

◆ rephrase the content: restate the reason the customer is upset, in

your own words.

◆ reflect the feeling: put the emotions you are interpreting from

the customer into words.

Example of format:

It can be . . . (feeling) when . . . (content). (Content is the

cause of the feeling.)

I can understand . . . (feeling) when . . . (content).

Other approaches are:

1. Are you (feeling) because . . . ?

2. You seem to be saying . . .

3. It is (feeling) when (content).

4. It sounds as if you are (feeling) because (content).

5. I would be (feeling) if this happened to me.

6. I can see you are (feeling) because (content).

7. It looks like you are (feeling) because (content).

Don’t just say: ‘I understand’. Such a statement is a cliché. You may

hear the customer say in reply ‘You don’t understand – you’re not

standing here with no bag, desperate for a change of clothes!’ If

you use ‘I understand’, make sure you include what you

understand (the reason the customer is upset) and the feeling you

are hearing (the emotions they are expressing).


In the airline example described in the active listening section,

empathy statements could be as follows:

◆ ‘I can understand you being disappointed (feeling is reflected)

that your bags have been delayed (the content restated).’

◆ ‘I would feel concerned (feeling is reflected) if I were missing all

my favourite clothes (the content is restated).’

◆ ‘It sounds as though you are really tired (feeling is reflected)

after such a long journey (the content is restated).’

Obviously you would not use all three statements – the customer

might feel that they were being ridiculed!


Exercise Creating empathy statements. Write an empathising statement for

each of the three customer situations we introduced earlier (see

page 173), restating the content (the reason they are upset) and

reflecting the feelings (the emotions they are expressing). Don’t

apologise yet! For these examples, as we discussed, we want to

practise each skill individually before putting them all together.

Obviously in the real world you would group the empathy, the

apology and the resolution more closely together.

AnswersCustomer situation 1

Three possible ideas (again don’t use all three!) are:

◆ I can understand you’re feeling let down (reflect the feeling)

because we have missed the shipping dates on three occasions

(restate the content).

◆ It could make you not trust (reflect the feeling) any dates we

supply you with (restate the content).

◆ It must be difficult (reflect the feeling) to manage your other

projects with such uncertainties about delivery (restate the

content).


Three possible ideas are:

◆ I can understand you’re feeling frustrated (reflect the feeling)

because you have been waiting for 30 minutes and now you find

you are in the wrong queue (restate the content).

◆ I would be concerned (reflect the feeling) if I thought that I

would have to repeat this process (restate the content).

◆ I know how time-consuming it is to be stuck on hold while you

have other work you could be doing.


Three possible ideas are:

◆ I can understand you’re feeling frustrated (reflect the feeling)

because the system is not performing to your expectations (restate

the content).

◆ I would be concerned (reflect the feeling) if I thought the

reliability of the system I bought might be in question (restate the

content).

◆ It sounds as though you are worried (reflect the feeling) that the

system may never cope with the workload (restate the content).


Develop your own style

One of the greatest challenges with empathy statements is making

them sound genuine. We have to develop our own style of

communicating in tense situations, showing we understand the

customer’s viewpoint, without sounding trite or glib. Practice

makes perfect. Empathy statements are really useful in other

aspects of our lives: negotiating with teenagers, reaching

agreements with our significant other, etc.

Empathy bridges barriers

When you use empathy statements, you are verbally crossing to

the customer’s ‘side’ in order to demonstrate you understand their

predicament. Often, when you have done this the customer then

follows you back to ‘your side’ to resolve the issues. ‘I know that is

not really your fault.’ Empathy statements allow both sides to

move from their positions.

‘I work for the company,’ ‘I need this for my job,’ to instead

focusing on shared interests: ‘What do we need to do to get this

problem resolved?’ Empathy statements, when used effectively, are

a key tool in delivering outstanding customer service.

A: Apologise to the customer

◆ Don’t pass the buck. When a problem situation arises it is

tempting to avoid it or to pass the buck, to say it was someone

else’s fault. Even when you know the problem was created by an

error on the part of someone within the company, don’t assign

blame to any of your company’s personnel. Doing so will only

reflect badly on the company as a whole, and therefore on you.

Apologising for the situation, without assigning blame, will

help move the customer to a successful resolution of the

problem.

◆ Always apologise. Often individuals are reluctant to apologise

because it wasn’t their fault. The point is moot – whoever’s

fault it was is irrelevant, you can still be sorry that the customer

is disappointed with the service received. However, it is

important to say more than ‘I’m sorry’; this is equivalent to ‘I

understand’ in empathy statements. It is important to make the

apology specific: ‘I am sorry that . . . ’


When travelling with a major airline recently, we were an hour

late taking off from Dallas because we had to stay on the runway

waiting for a thunderstorm to clear. When we finally took off the

Captain offered no apology – another dull moment of truth with

an airline. When I asked the person sitting next to me about this

(also a captain en route), she said ‘It is not our policy to apologise

for something that is not our fault.’ An interesting policy. How

much more pleasant it would have been to have heard an

announcement from the cabin instead, ‘I apologise for the delay in

taking off due to the bad weather in Dallas. I will do my best to

catch up some of this time on our journey.’ This would not have

been an admission of fault, just a politeness to smooth the

journey.

◆ Don’t say but. One of the largest temptations when apologising

is to say ‘I’m sorry, but the . . . ’ The but effectively negates any

words that precede it; it disqualifies the apology. The reason for

the mistake often relates to internal problems and the customer

does not want to know, or should not be told about these

issues. The classic example is when a restaurant says ‘I’m sorry

your food was delayed but we’re busy.’ ‘Who cares?’ is my

normal, non-empathetic customer response! If you want to

provide an explanation, then use however as a bridging word,

but think twice before justifying the problem.

◆ What about when the customer is in the wrong? Finally,

remember the customer is always right even when they are

wrong. They may not be right, but they are still the customer.

You can still apologise for the inconvenience they are having

with the situation even if the situation is of their own making.

Take the example of a customer who has not followed the

correct procedure to install a patch when upgrading a system.

As a result the system failed. Obviously, if they had followed the

correct procedure the system would have worked. It does not

help to tell the customer that! They are probably already

kicking themselves because of their mistake. It is perfectly

acceptable to say ‘I’m sorry the installation did not go well –

let’s look at how we can make it a success this time.’

The end result from the latter will be a calmer customer, more

willing to work with you on the issue. When customers hear

apologies it helps them calm down and move more logically to

a positive problem resolution mode.



To continue the example of the lost (sorry, delayed!) baggage, a

couple of appropriate apologies would have been:

◆ I’m sorry for the inconvenience the absence of your baggage is

causing you.

◆ I apologise on behalf of the company for the delay in your

baggage.

not:

◆ I’m sorry but the crew in San Francisco messed up.

◆ I’m sorry but most people get their baggage back at some time!

Exercise Apologising to the customer. Using the situations discussed earlier

(pages 173 and 176), write how you would word an effective

apology to the customer.

AnswersListed below are a couple of apologies for each situation:


◆ I’m sorry we have not been able to make the delivery dates

promised.

◆ I apologise for the inconvenience the slipped delivery dates have

caused you.


◆ I’m sorry you have had to wait.

◆ I apologise that you ended up in the wrong queue.


◆ I’m sorry the system is not currently performing to your

expectations.

◆ I apologise on behalf of the company for the challenges you are

facing in getting our system up to speed.

R: Resolve the situation

After you have listened actively, empathised and apologised to the

customer, the emotions of both parties should be under control.

Now is a good time to move the focus of the interaction to

resolving the situation.

In the heat of the moment it is easy to think only of a reactive


solution: one that fixes the immediate problem. While this is a

good start, it is important to consider more proactive options:

◆ Is there need for a change in a process or procedure?

◆ What could be done to stop this from happening in the future?

◆ What other sources of information could be provided to

customers?


To complete the airline story, the reactive solution would be to

create a step-by-step plan to get the baggage to the customer, for

instance:

◆ Fill in an accurate claim form.

◆ Get the address of the customer.

◆ Check in the system for any notes on the bag.

◆ Send a note through the system to discover what plane it is on.

◆ Organise the pick-up of the bag when it arrives, and dispatch it

to the house.

Some of the proactive things to check could be:

◆ Was there a system mistake, which meant that the bag did not

get on the same aeroplane?

◆ Why was the correct data not in the record – does this process

need to be updated?

◆ The centre for dealing with information and requests in the

United States only takes incoming calls – perhaps the phone

system should include the ability to make outgoing calls.

◆ What other services could be offered to the customer, in the

event that the process does break, to make the experience less

stressful? A complete set of toiletries? Vouchers for clothes?

◆ What other information could be provided to make the process

easier: a list of time frames and financial compensation for

each?

How did the airline do? In reality, on a scale of 1–10, they scored

about 2 on reactive service. There was no apology, no empathy. I

had to call four times for updates, I had to push to discover

financial compensation policies, and at the first contact (one of

those fundamental moments of truth) the representative said ‘The

system says your bag is here: have you checked the conveyor belt?’

Obviously not! I wanted to not have my suitcase at 5:30 in the

morning and create a problem for this person! Arguing with the


customer is never a good idea.

What about a proactive resolution? Based on the reactive score

card, I would be very doubtful whether any system changes

would be forthcoming.

Exercise Creating reactive and proactive resolutions. Create both reactive

and proactive solutions for the three situations on page 181.

There are complete answers for all three scenarios at the end of

this section. However, a complete sample response to each

customer’s situation could be:


I can understand your frustration that the dates have slipped on

several occasions. I apologise for the inconvenience this may have

caused you. Let’s look now at a realistic date for delivery of your

order.


I know how annoying it can be to find yourself in the wrong

queue. I’m sorry you have been inconvenienced. Let me see if I

can help you with your problem.


I would be frustrated if I was relying on the system and it was

unrealiable. I apologise on behalf of the company for the

challenges you are facing. Let’s see if we can analyse the

performance issue in more detail. Tell me . . .

AnswersCreating reactive and proactive resolutions: below are examples of

both solutions for the three situations. The list is by no means

complete!


Reactive solutions:

◆ Talk to the people involved in giving dates.

◆ Get a new date.

◆ Ask questions about what could go wrong to prevent these

dates being met.

◆ Commit to call the customer directly if the dates change.

Proactive solutions:

◆ Research what happened to the last three dates.


◆ Is there some change to a system that prevents slippage in dates

like this from occurring?

◆ What new process could be introduced to ensure that the

setting of dates was more accurate?


Reactive solutions:

◆ Go around the system and put the customer to the front of the

next queue (if possible).

◆ Say that you can get someone in that group to call you within

an hour so that they don’t have to wait on the telephone.

◆ Fix the customer fault yourself, if you have the expertise.


◆ Find out what criteria caused the customer to choose the wrong

queue.

◆ Re-evaluate the sequencing and criteria for choosing queues

and reprogramme the automatic call distributor (ACD) if

necessary.

◆ Revisit the staffing schedule against the call flow to assess

whether any changes could be made to working hours, to better

meet demand.


Reactive solutions:

◆ Fix the problem.

◆ Diagnose the system in terms of load and work flow.

◆ Upgrade specific hardware/software.


◆ Review the sales process that produced this solution for the

customer.

◆ Re-evaluate system configuration.

◆ Offer training as an option.

Implementing the CLEAR techniqueUsing the CLEAR technique, even with lots of practice, is not as

straightforward as it looks. In the pressure of the moment it is

often not easy to remain calm and address the issues in a


controlled way. Companies can make this process easier if they

identify and train personnel how to address them.

For instance, in working with a web-based marketing company,

their sales force regularly faced unhappy customers with very

similar issues. Samples are shown below, grouped under the

category of type of upset.

Performance: typical client comments

◆ ‘The campaign has not performed to my specifications – I was

expecting to get a certain number of leads/conversions, etc. The

results were useless!’

◆ ‘Now that you say we will change the approach because of the

programme not performing adequately you are telling me I

have to resubmit all that paperwork. Why can’t we just make a

small change?’

◆ ‘I can’t read the report – it is in HTML format – how can I see

the data I really need?’

Inventory

◆ ‘The inventory has gone, despite the fact that I returned the

signed contract within two hours – can’t you hold the

inventory?!’

Billing

◆ ‘I have been billed twice for the same contract.’

◆ ‘My purchasing department wants to know why you can’t sign

our contract instead of us signing yours.’

◆ ‘Why is your billing time period different from the traditional

print industry?’

The group identified these difficult moments of truth and used

them in two ways:

1. They used them in staff meetings to role-play what each person

could say.

2. From these role-plays the team created a series of possible

statements (not scripts, as we discussed in Chapter 6) to answer

the issue in a calm and assertive manner.


Exercise Identifying potential problem areas:

Step 1: List some of the issues that are causing customers to

become irate with you, your team or the organisation. If

you don’t know them, this may be a good indicator that

you need to develop more processes for tracking

customer complaints.

Step 2: Identify, for these issues, how many of them your service

providers have been trained to handle.

Step 3: For those that have not been discussed with the team,

plan some time to create possible assertive answers for

these issues.

Step 4: Question each issue with the following: ‘Is there anything

that could be done to avoid this in the future?’

Step 5: Move on to the next section with any issues that are

remaining.

Case study: Cleanworks deals with customer complaints

Cleanworks established systems to track complaints. A few are listed below:

◆ Forms were created to record any customer complaints that came via the

phone. These were to be reviewed daily by the supervisor.

◆ Forms were created for the critical steps in the laundry and dry cleaning

process, so that potential problems could be identified by internal staff, not by

the external customer. For instance, if there was a stain that had not come

out in treatment, the form recorded this, and was sent to a customer service

representative to call and explain the issue and offer alternatives.

◆ The training process included specific role-plays customised to the group so

that they could practise their skills.

Case study: Kitchen Barn deals with customer complaints

Kitchen Barn set up a comprehensive system to record and track customers’

complaints:

◆ All written complaints Gary reviewed personally and replied within seven

business days. Even when he was travelling, his Executive Assistant knew that

this was critical data for him to receive.

◆ Often he would personally call the customers with his apology, request more

data and attempt to create a solution. The customers were so delighted they

often forgot, or downplayed their complaint.

◆ Customer complaints in the store about products were also tracked and fed

back to the product development group. This group collated the data, sent

the customer a card thanking them for their comments and telling them


what action had been taken.

◆ Sales associates role-played in staff meetings some of the difficult issues they

faced around furniture and window coverings. From these role-plays a

reference manual was created for the staff.

◆ Posters asking customers what Kitchen Barn could do to meet their needs

more effectively were displayed in every store with suggestion cards. The

same process was also implemented internally with awards being offered for

the best ideas that became customer processes.

With constant review of complaints and Gary’s active involvement, gathering the

relevant data for process improvements became a way of life at Kitchen Barn,

and service and sales continued to improve.

Case study: Internet Express deals with customer complaints

In the technical support area, over 90 per cent of the calls are related to

problems – that’s why the group exists. As we discussed in Chapter 6, the group

had already made the first steps in creating a ‘tool box’ that included suggested

scripts for difficult interactions. In addition they created new systems for tracking

customer complaints and issues:

◆ Every rep who had dealt with an irate customer was required to complete a

simple form that identified why the customer was upset and what the

outcome of the discussion had been.

◆ These forms were fed into the continuous improvement efforts (see the next

chapter).

◆ Managers made an effort to listen in to irate customer calls, in an effort to

identify whether the cause of the tension was a product issue or if it was the

way the service provider was dealing with the customer.

◆ This data was then integrated into the manager’s coaching role. (See Chapter

10 for more information.) ____________________________________________

Discussion points1. To what extent do your people understand the CLEAR

technique? How often do you review and practise this

technique in staff meetings to help refine the skills?

2. To what extent have you recorded the most difficult moments

of truth? Have you helped your team to create possible phrases

to use in dealing with such issues? Where is this information

centralised? How else could you gather this data and make it

accessible to others?


3. How do you record customer complaints, both verbal and

written? Who responds to complaints and in what time period?

How is the customer’s reaction to this response tracked? How

do you evaluate the effectiveness of your complaint procedures?

4. What else could you do to encourage customers to provide you

with feedback?

SummaryIn this chapter you have learned about the most important steps involved

in dealing with customer complaints:

◆ We need to make it easy for the customer to complain to us – if

we do not know they are dissatisfied, we are unable to take any

action.

◆ When we know about the problem, recovery becomes an

important service management tool.

◆ When customers contact us, we need to be able to defuse their

emotions and reach a positive resolution using the CLEAR

technique. We need to:

– calm our emotions

– listen actively to the facts and feelings the customer is

expressing

– empathise by reflecting the feelings and restating the facts.

– apologise no matter whose fault it was

– move on to a positive reactive and proactive resolution.

◆ Even though we can teach the CLEAR technique, we have to

recognise the common causes for upset customers. Once we do

this we can consistently train our people so they have answers to

these situations. We can then adopt a problem-solving approach

to see if we can eliminate these issues in the long term.


s we discussed in Chapter 2, instituting continuous

improvement is the fourth leg of the service delivery model.

In this chapter we will investigate how we can incorporate the

feedback from customer complaints into more long-term process

improvements or adaptation. More often than not, we implement

a reactive solution to the customer’s situation, while not looking

any further into the root cause of any problems. We need to

ensure that we also include proactive problem resolution, to

prevent upsets to future customers. In addition, constantly

updating internal material processes is pivotal in exceeding

customer expectations. Finally we look briefly at re-engineering

and describe its role in improving customer service levels.

Long-term process improvementsMost of the time we accomplish the reactive solution successfully,

but then we are unable, unwilling or too preoccupied with current

events to evaluate and implement the proactive options. As a

result we tend to solve the same problem again and again, but in

different ways! Short-term gain produces long-term loss.

In order to ensure we are consistently improving existing

processes, and solving a problem once rather than many times, it’s

important to use an effective problem-solving methodology and to

constantly question systems and procedures.

Problem-solving

No matter how organised and structured the material service

processes are, things break. We live in a rapidly changing world,

and humans are more than capable of errors. Problems often

occur. These can encompass major issues such as system faults,

missed shipping deadlines, shortfalls in sales, communication

issues such as conflicts and misunderstandings, and smaller

Serviceexcellence

means neverstopping

improving

CHAPTER 9

Instituting ContinuousImprovement Processes

A

mistakes such as wrong data entry, missed mini-milestones and

mistakes. When any problem occurs, there is a tendency to react

and fix it, but sometimes the symptom gets fixed, not the root

cause.

Organisations which adopt these proactive problem-solving

approaches will save time long-term and be more able to deliver

outstanding customer service.

Proactive problem-solving involves a number of steps:

1. Perceive the problem

2. Define the problem

3. Analyse the problem

4. Generate alternatives

5. Evaluate alternatives

6. Make a decision and implement.

Figure 19 gives some ideas for questions to ask, and guidelines for

approaching each step in this process. Examples of this process in

action are included in the case studies later in the chapter.

Exercise Solving a problem. Analyse a current problem that is affecting

service to the customer and work through the process to identify

some possible solutions. Think carefully about the underlying

root cause of the problem.

1. Perceive the problem: what is it?

2. Define the problem: be specific. Make sure you find the root

cause.

3. Analyse the problem: what are the components of the

problem?

4. Generate alternatives: what are some possibilities, both

conventional and unconventional?

5. Evaluate alternatives: what criteria will you be using to decide

on a solution?

6. Make a decision and implement: who is going to do what by

when?


Successful problem resolution involves identifying the source

of the problem and then using proactive strategies to prevent

it from recurring.

Instituting Continous Improvement Processes 189

Problem-solving Questions Guidelinesstep

Perceive the problem • Is there a problem? • Don’t assume a• What does it look problem is bad

like? • Look for the real• Where is the problem

problem?

Define the problem • What are the facets • Avoid assumptionsof the problem? • Create a problem

• Is it a tangible definition that:problem (missing – is specific anddeadlines, sales measurabletargets)? – shows how the

• Is it an intangible problem relates toproblem (conflicts)? the customer and

the organisation

Analyse the problem • What is the • Don’t jump toproblem and what resolution tooare the symptoms of quicklythe problem? • Use an analysis

• What is really the tool such as aroot cause? fishbone diagram

Generate alternatives • How could we • Generate as manyapproach this ideas as possibleproblem differently? • Record all ideas

• What are some • No criticisingnew ideas? • Everyone

• What are ideas we participatestried once before but • Combine and buildcould adapt? on ideas

Evaluate alternatives • What criteria shall • Make sure thewe use? criteria are

• How will we verbalisedweight options? • Listen to all team

• How will we members’ inputbalance objective • Be aware of win-and subjective lose tacticscriteria?

Make a decision and • To what extent is • Try for a win-winimplement this solution solution

satisfactory to all? • Consider other• Do we have time restraints such as

to care? time and resources

Fig. 19. Problem-solving questions and guidelines.


Customer service task forcesMany organisations decide, when they institute the customer

service initiative, to establish customer service tasks forces. These

teams play several important roles in driving up customer service

levels:

◆ They involve a broader spectrum of people, often from diverse

groups within the company.

◆ They are able to make recommendations and implement

specific process improvements.

◆ They keep customer service ‘in sight and in mind’.

In order for these customer service task forces to have a chance

of being successful there are certain requirements:

1. Senior management must be committed to the task forces,

listen to their input and empower them to make changes.

2. Each task force needs to have a trained facilitator – many such

groups fail because there is no one person trained to guide the

group process.

3. The task force must be allowed time to work on their allocated

task. This sounds obvious, but it is amazing how many

managers expect such work to be conducted above and beyond

their employees’ normal workload.

4. Time needs to be invested in ensuring that the right skill and

experience mix is included on each task force. Being alive is

not the only requirement!

With these qualifications met, the task forces can prove to be an

active and effective tool in helping the company to exceed

customer expectations. As we discussed in Chapter 2, the

Customer First teams at British Airways played a fundamental role

in instituting new systems and procedures to better meet

customers’ needs.

Updating SLAs

Ongoing maintenance of SLAs

An SLA needs to be a living document. Ongoing maintenance of

your SLAs means the difference between a fully living and

effective document that reflects how you meet your customers’

needs and a document that’s been forgotten in a file drawer.

They must change and develop as your customer requirements

and expectations change. There must be a process in place to link

the SLAs with customer satisfaction to understand when and how

your customers’ demands change so that you can revisit and revise

your SLAs.

There are four steps to consider:

1. Conduct monthly performance reviews with customers,

management and employees.

2. Conduct proactive analysis of service disruptions.

3. Renegotiate and adjust SLA reporting requirements as your

business changes.

4 Establish an annual process to review and update your SLAs.

Performance review meetings

Performance review meetings are meetings that are held with key

players and are a vital tool in linking your performance

measurements to a continuous improvement process.

In a support centre, for instance:

◆ Some measurements such as an automatic call distributor

(ACD) report are likely to be reviewed on a daily basis.

◆ Things such as problem resolution rates would be reviewed on

a weekly or monthly basis.

◆ These reviews are usually done internally by the support group

and are used as tools for the day-to-day management of the

support centre. For example, if you saw a large increase in the

call hold times during certain periods of the day you may want

to rearrange the staff coverage to better service customers.

◆ The vital link between performance measurements and

continuous improvement is the monthly performance review

meeting with all groups involved in the service delivery process.

At this meeting, all groups come prepared to present their key

performance measurements for the previous month to a senior

manager. At this meeting service levels and effectiveness can be

reviewed, any issues raised, improvement actions assigned and

progress monitored.

◆ If this meeting is set up and handled correctly, it can be a very

powerful tool to manage internal processes.


Re-engineering service deliverySometimes customer complaints or a fundamental change in the

way the business operates means that the entire service delivery

system needs to be re-evaluated and redesigned. Such a process is

currently known as re-engineering, but the approach can also be

very similar to that advocated in total quality management

(TQM). This subject material is beyond the scope of this book,

therefore specific reference books are included in the

bibliography.

Case study: Cleanworks: continuous improvement

Cleanworks was still not an operating business, therefore there were no

improvements that could be implemented!

Case study: Kitchen Barn: continuous improvement

Kitchen Barn undertook a more proactive problem-solving approach with

customer complaints:

◆ Customer complaints in the store about products were tracked and fed back

to the product development group. This group collated the data, sent the

customer a card thanking them for their comments and telling them what

action had been taken.

◆ GUEST implementation teams were established in every district. Their role was

to monitor the customer and employee suggestions and recommend

improvements to management.

◆ One of the frequent complaints from customers was that the display shelves

were awkward, the products difficult to identify and prices were not clear

enough for all items. Customers were complaining when they reached the

register that the products were more than they thought.

◆ At first sight this could have been a signage issue, but the GUEST team

decided to use the problem-solving approach that was recommended in this

book (see Figure 20).

With the success of the GUEST teams and the application of the proactive

problem-solving methodology, continuous improvement became a way of life at

Kitchen Barn.

Case study: Internet Express: continuous improvementProblem-solving

As you know Internet Express is a high-tech computer software support centre,

which was supporting over 30,000 customers covering over 50 products. Initially,

Arthur advocated the problem-solving approach for his team. An example of a



Problem-solving step Questions Information/action

Perceive the problem • Is there a problem? • Customers could not read• What does it look like? the display easily• Where is the problem? • Customers were complaining

that the price they werecharged was not the same asthe one on the display

Define the problem • What are the facets • Display shelves are aof the problem? certain width

• Is it a tangible problem • Based on that width, it was(missing deadlines, sales difficult to display productstargets)? in an organised way

• Is it an intangible • The signage often becameproblem (conflicts)? separated from the products

Analyse the problem • What is the problem and • The shelf display had alwayswhat are the symptoms been three feet wideof the problem? • This size did not work well

with the newer products• What is really the This size had been

root cause? initiated by the founder

Generate alternatives • How could we • Could we change the widthapproach the of the shelves? This wouldproblem differently? involve going against 20

• What are some new ideas? years of tradition• What are some ideas • It would mean asking the

we tried once before founderthat we could adapt? • New in-store design was

created• New signage options were

identified

Evaluate alternatives • What criteria shall we • The best option was touse? redesign the in-store shelf

• How will we weight space because this would:options? – Allow more products to be

• How will we balance displayedobjective and – Ensure signage was clearsubjective criteria? – Drive sales more proactively while

also meeting customers’ needs

Make a decision and • To what extent is this • The founder was asked andimplement solution satisfactory he said: ‘I only chose the three-foot

to all? width because that was the width• Do we have time to care? they cut wood. I didn’t understand

why no one had changed it before,because it made no sense!’ The width of the shelves was changedas part of a comprehensive storeredesign

Fig. 20. Sample problem-solving steps.

problem faced between two groups is shown below.

Theresa was the manager of the group in question, the first-level support

group. This is the group that takes all incoming calls.

1. Perceive the problem. The customers began complaining that the response

time (time to answer the phone) was not quick enough and that problems

were taking too long to fix within the first-line support group. Arthur began

tracking performance data regularly, which showed the deterioration in

response time, and raised the issue with Theresa. She initially believed that

such issues had arisen before and that there was no need to take immediate

action. As the situation continued, she realised that this time the problem was

longer running than in previous times and that action should be taken.

2. Define the problem. In the short term, two problems were defined:

◆ On average the phone is being answered at ____ time, with ____ staff and

____ resources.

◆ Average time from the problem being called in, to the problem being

solved has risen from three to six days. ____ customers are complaining

about poor service.

3. Analyse the problem. Categories to help adequately define the problem were

as follows:

◆ time of day

◆ type of calls

◆ time to answer the call

◆ type of problem

◆ people on site

◆ other tasks individuals were performing, etc.

4. Generate alternatives. Options generated initially included:

◆ change the phone answering process

◆ use voicemail more frequently

◆ reprogramme ACD (automatic call distributor) to allocate call flow more

effectively

◆ create a new group to answer the phone

◆ reorganise the group.

In this part of the problem-solving process, the possible challenges in

addressing the issues arose. Theresa was reluctant to consider the approaches

that would result in the major reorganisation of her team. She believed she

had built a cohesive unit and did not want to change the structure just for

the sake of change. In involving Arthur’s management team in generating

ideas, Sharon, a manager from another group, expressed that she had a

completely new idea for how the team could operate and be successful.

Arthur was impressed by the possible innovative way out of the problem.


5. Evaluate alternatives. The team created a list of criteria on which to make a

decision. Theresa presented a logical cause and effect analysis, which Arthur

agreed with. Sharon was unable to clearly explain the rationale behind her

proposed approach.

6. Make a decision and implement. As a result, the decision was made to try

several short-term solutions (changing resource allocation, bringing in

temporary help for paperwork, etc), implement these and then monitor for

performance improvement.

The call volume went down within a short time (it had been driven by a

new product release and customers asking questions on additional features)

and this short-term response was a success. This analysis prevented the team

from hiring new people, always a time-consuming and expensive process,

when a more short-term resolution was better.

Establishing project teams

However, as the organisation continued to re-evaluate its existing processes and

procedures, Arthur became aware of the need to structure the approach to

continuous improvement by establishing specific project teams.

The challenge for Arthur’s team was to move from purely reactive technical

support to a more proactive approach. The management team tended to be

more junior, and loved the excitement and the challenge of the dynamic technical

support environment. Every day was different! Unfortunately, they mistook their

reactive mode for productivity, a common mistake, and as a result were not as

focused on the long-term issues as they could have been.

For this reason, Arthur divided his management group into four long-term

process improvement teams:

◆ measurements and metrics

◆ service level agreements

◆ product knowledge and training

◆ escalation process.

Any issues that arose in any of those areas were filtered to that team so as to

centralise the information.

Re-engineering the support centre

However, as the organisation continued to re-evaluate its existing processes and

procedures, Arthur became aware of longer-term needs for more drastically re-

engineering the support centre.

Arthur decided, because of the relative newness of his team, to hire an


external consultant to help with process design and implementation. Arthur

asked the consultant to review the support delivery process with an aim to

improve both external and internal customer satisfaction levels. Reviewing and re-

engineering a poorly structured support centre and its systems may solve many of

the support centre’s problems.

The problem with the Internet Express support centre had already been

perceived and there were a number of warning signs of a support centre at risk,

such as:

◆ poor reputation

◆ under-staffing

◆ inconsistent processes

◆ unrealistic service levels

◆ low customer satisfaction

◆ inadequate training

◆ high burnout and turnover.

During two meetings among Arthur, his management team and the consultant

it was agreed that the re-engineering effort would be broken into four phases.

1. Define the problem. The consultant carried out a detailed review of the

support centre with respect to the six key areas of effective support:

◆ business alignment

◆ service culture

◆ operational processes

◆ people/motivation

◆ people skills

◆ tools and technology.

During this phrase the consultants collected documentation from the

support centre in these six key areas, completed a ‘quick tour’ checklist of the

support centre, interviewed management, supervisors and analysts, and

observed the staff in live operations. The consultant compiled the data from

this review into the six key areas and their 38 supporting categories to

determine an overall score for the support centre.

2. Analyse the problem. During this phase the consultants reviewed the findings

from the data-gathering and defined the various weaknesses in the existing

service delivery procedures. For instance, although Arthur and his team felt

that they had done an excellent job in communicating the customer service

strategy, when team members on the phones were asked about the slogan

and direction very few could answer the question. In addition, in observing


the support centre, there were no obvious visible reminders such as posters,

cards, etc.

3. Generate recommendations and implementation strategies. During this phase

the consultants produced a report containing, for each problem area

identified, a comprehensive list of recommendations and action ideas. This

report was presented to Arthur and his team, who then prioritised

implementation ideas and allocated responsibilities for different tasks. For

instance, in terms of the lack of clarity of the customer service strategy to the

team, the actions identified were:

◆ have an all-hands meeting to restate goals and objectives

◆ prepare presentations that could be used by managers within their groups

at staff meetings

◆ plan staff meetings for directors with their direct reports

◆ produce screen-savers and posters stating the strategy.

4. Evaluate recommendations and implement decisions. During this phase, which

took place three months after the initial recommendations, the consultants

revisited the support centre and reassessed its service levels in comparison

with the analysis they had completed in phase one.______________________

Discussion points1. Based on your most difficult moments of truth, have you

evaluated the extent to which there might be a root cause that

could be tackled, and a core problem solved?

2. Pick one problem with which to try out the problem-solving

approach. What worked? What was the most difficult step?

Which was the most valuable step? What was the greatest

benefit in using this approach?

3. How often do you regularly evaluate your internal systems and

procedures? What questions have you created to ensure the

validity of material service processes?

4. How could you establish customer service task forces to keep

the momentum of the service initiative alive? Who could be

included? How would you monitor their effectiveness?

5. Are there any areas in your company/group where the current

systems and procedures appear to be completely outdated?

How could you approach re-engineering these areas?

6. To what extent do you revisit your SLAs? How often do you

meet the performance requirements specified therein?


SummaryIn this chapter you have learned about the most important steps to define

and ensure continuous improvement occurs, as follows:

◆ We need to move on to a positive reactive and proactive

resolution.

◆ We have to recognise the common causes for upset customers.

Once we do this we can consistently train our people so they

have answers to these situations. We can then adopt a problem-

solving approach to see if we can eliminate these issues in the

long-term.

◆ The problem-solving approach encompasses the following

steps:

– perceive the problem

– define the problem

– analyse the problem

– generate alternatives

– evaluate alternatives

– make a decision.

◆ By combining the reactive and proactive resolution of issues, we

can constantly improve the service delivery processes.

◆ By constantly re-evaluating SLAs we are able to track our

effectiveness in meeting customer needs.

◆ Often processes in the organisation have outlived their

usefulness. In this case we may need to consider re-engineering,

which is going back to zero and starting our processes and

procedures from scratch.

◆ Project teams and task forces are a great tool for maintaining

continuous improvements in our service delivery system.

◆ No matter how well we do initially in our drive to improve

service, we are measured by the last customer experience.

Continuous improvement is fundamental to delivering

outstanding customer service.


s we discussed in Chapter 2, managers are the driving force

behind the customer service culture change. If they lead the

process by ‘walking the talk’ then they act not only as role models,

but are also critical in directing process improvements and

coaching team members. They need to be both managers and

leaders. They need to do the day-to-day activities with their

employees as well as lead from the front. In this chapter we will

explain and clarify the differences between a manager and a leader,

and show the contributions they can make as leaders to the service

initiative.

Leaders can make sure the objectives for delivering customer

service are achieved by defining specific standards then constantly

assessing performance against these standards. They need to

develop their employees by providing relevant, timely feedback and

coaching them on their current and future performances. In

addition they need to build a positive, productive team focused on

meeting customer needs. Finally leaders play a fundamental role

in building a customer-focused culture by creating reward systems

to celebrate successes. In the case studies you will see how each

organisation customised these approaches for their managers.

Defining leadership

Leader versus boss

The leader plays a fundamental role in delivering high-quality

service. When group members feel ‘coached’ rather than ‘bossed’

there is a tendency for a sense of ownership to develop, morale to

increase and overall service to improve.

The actionsof managers

make orbreak the

serviceinitiative

CHAPTER 10

Helping Managers Become Leaders

A

Being a Leader

Leaders must be able to lead their teams to produce exceptional

service.

The characteristics of an effective customer service LEADER are:

L: Lead when necessary. Leaders lead when the team gets ‘stuck’

but allow other members to direct depending on the work the

team is doing.

E: Engage the team. Leaders need to facilitate interaction within

the team. Using communication skills such as open-ended

questioning, careful listening and paraphrasing team members’

contributions will ensure an environment where team members

are heard and thus want to be involved.

A: Attitude of ‘we’ not ‘I’. Leading means that ego has to be left at

the door. A leader must be willing to allow every team member

to share in rewards and recognition. If a leader takes credit for

someone else’s contribution or appears to be out for his/her

own good, team members will become demotivated and service

to the customer will decrease.

D: Do real work on the team. There are many leadership tasks

critical to ensuring the delivery of service to the customer, such

as organising logistics, lobbying for resources, communicating to

the organisation about the team’s activities and removing

obstacles from the team’s path. Also the leader needs to regularly

interact directly with the customer. Providing this service keeps

the leader in touch with customer needs and builds his/her

credibility with the team.


The leader The boss

Coaches people Drives people

Depends on goodwill Depends on authority

Inspires enthusiasm Inspires fear

Fixes the breakdowns Fixes the blame for

breakdowns

Says we Says I

Says let’s go Says go

Adapted from H. Gordon SelfridgeSelfridge’s Department Store, London

Helping Managers Become Leaders 201

E: Excite the team. If the leader can reinforce the team values,

provide rewards for exceptional service and establish a positive

environment, service providers are more likely to ‘go the extra

mile’ to meet customer needs.

R: Results-focused. The leader plays a fundamental role in setting

SMART objectives, establishing service standards and

measuring progress towards objectives.

Characteristics for leaders

The critical characteristics for leaders fall into three categories:

◆ achieving the objective

◆ developing the individuals

◆ building the team.

Leaders help the team to achieve the objective by focusing on

results and by doing ‘real work’ themselves. Leaders build the team

by leading only when necessary and engaging the team

throughout the stages of team development. Leaders also develop

the individuals on the team by getting the whole team energised

with their charisma and inclusive attitude of ‘we’ not ‘I’. A careful

examination of each of these areas will build an understanding of

how leaders drive the customer service improvement process (see

Figure 21).

Fig. 21. How leaders drive customer service improvements.

Achieve the objective– Focus on results

– Do real work

Develop the individual– Excite the team

– Attitude of ‘we’ not ‘I’

Build the team– Lead when necessary

– Engage the team

Customer service leader


Achieve the objectives: focus on resultsThe leader plays an important role in helping to achieve customer

service goals in two main arenas. First, the leader defines specific

objectives, sets customer service standards, and measures and

monitors results. In this way the leader charts and checks the

course to reaching the expected results. Much of this was

discussed in Chapter 7. Secondly, the leader is responsible for

many ‘behind the scenes’ actions needed to remove the barriers to

delivering exceptional service.

One of the more subtle aspects of this role is serving as the link

between the organisation and the team. This link spans several

areas that include helping to reduce or eliminate barriers to

customer service, ensuring the team has the resources it needs to

perform effectively, and acting as the main communication

channel between the team and the rest of the organisation and its

customers.

Managers can undertake a wide range of activities to ensure

their people can exceed customer expectations. These activities

can include:

◆ obtaining access to resources (update hardware, software,

improve phone system, etc)

◆ making sure service providers have the information they need

◆ negotiating with other organisational teams

◆ intervening when material service delivery processes are

inhibiting personal service

◆ sifting through ‘organisational politics’.

Creating the right environment is a crucial part of the ‘real

work’ the leader must do, so that results can be produced.

Exercise Think about the current challenges your team faces in delivering

outstanding customer service. Factors could be lack of resources,

problems with systems, etc. Make a list of them.

Now brainstorm actions you could take to reduce or eliminate

some of these factors and write them down next to each of the

factors inhibiting service delivery. Be prepared to share the list

with your team members for feedback and ideas.

Develop the individualAs we discussed in Chapter 4, building the correct skill mix is

significant for providing exceptional service. However, once the

service providers are hired, the constant monitoring of talent and

developing of individuals become paramount. For consistent

managing of moments of truth, the leader must give constant

feedback and ensure that team members feel motivated. By getting

team members excited about what they are there to do and

coaching their performance with proper feedback, the leader

unleashes the hidden abilities of his/her people.

Feedback

Feedback is any kind of attention you can get from or give to

another person. It is a fundamental human need and is essential

for a relaxed and happy life. When providing customer service,

feedback is a crucial part of improving results, building self-

esteem and enhancing trust. There are various types of feedback

(see Figure 22):

◆ positive

◆ developmental

◆ negative

◆ zero.

Research has shown that on average we receive six to nine pieces

of negative/developmental feedback in exchange for one positive.

Not a healthy balance!


Type of feedback Definition Examples

Positive feedback Telling someone what • Praisethey have done right • Thanksnormally makes them • Attentionfeel happy and useful by • Interestboosting spirits and • Admirationgenerating enthusiasm.

Developmental This is used when indi- • ‘Next time you mayfeedback viduals need to improve want to ask a few

in a specific area. It is more open-endedgiven so that a service questions to moreprovider can take nega- clearly definetive behaviour and turn customer needs.’it into positive behaviour. • ‘You tended to speak

Feedback is also given and received in many different ways:

◆ physically

◆ mentally

◆ conditionally

◆ unconditionally.


The feedback focuses over the customer –on the behaviour, this might result innot the person the customer feeling

‘Go for the ball not switched off.the player!’ This is Another approachthe most difficult feed- might be to . . .’back to provide in apositive way.

Negative feedback This type of feedback • ‘What did you dotends to hurt or deni- that for?’grate, and can make • ‘That was reallyindividuals feel as if stupid.’they have failed, rather • ‘I told you not tothan learning from an interrupt theexperience. Negative customer.’feedback is one of the • ‘You did . . .worst types of input wrong.’because it actuallylowers self-esteem.

Zero feedback This is simply the lack • Not dealing with aof any kind of feedback, bad situation/action.positive or negative. • Not recognisingThis is worse than someone’s contribu-negative input. With tion of a good idea.zero feedback the • Not noticing whenindividual is constantly someone deals welluncertain of where they with a customerstand. They feel • ‘Blowing off’ one-insecure, unappreciated on-one meetingsand unclear about with team members.what is expected of • Not providingthem. accurate and timely

performance reviews

Fig. 22. The different types of feedback.


Exercise Conduct a feedback assessment for your group. Individually, think

of the last few times you have given feedback to your team

members.

1. What type of feedback did you give (positive, developmental,

negative, zero)?

2. How was it given (physical/mental)?

3. In what way was it given (conditional/unconditional)?

Give specific examples such as: ‘I gave positive, mental,

Type of feedback Examples Guidelines

Physical feedback Physical feedback In today’s businessinvolves some sort of climate we must bephysical contact such careful about the type ofas a pat on the back or physical feedback wea handshake. give. A handshake is

practically the onlyacceptable form oftouch.

Mental feedback Mental feedback can Don’t forget that if yoube either verbal, i.e. say one thing, ‘good job’,praise or thanks, or but your body languagenon-verbal, i.e. says another ‘I can’t benodding or smiling. bothered with this’ –

individuals will believethe latter!

Conditional ◆ Holiday, parties This is input that isfeedback ◆ Bonuses expected and planned.

◆ Salary increases It comes in response to◆ Performance special occasions or

appraisals performances.

Unconditional ◆ Verbal recognition in Unconditional feedbackfeedback front of the team. is usually more fun and

with no prior notice appreciated more, as it◆ Positive feedback comes as a surprise. As

from someone a result, unconditionaloutside the team feedback is an effective

◆ Customer letters of way of raisingappreciation individual self-esteem

◆ Surprise ‘night on and raising motivationthe town’ award of the team as a whole.

Fig. 23. Giving and receiving feedback.

unconditional feedback today when I told Joe that the production

of a current accurate failure analysis report was an important first

step to defining the quality issues that are lowering customer

service levels.’ Give three examples of your own.

Many researchers have compared the effect of feedback with a

bank’s debit and credit balance. If service providers have a credit

balance of feedback, they probably feel positive or energised. If

they have a debit balance, they are more likely to feel less

motivated and depressed. The positive feedback balance is an

essential component in ensuring that service providers remain

motivated.

Individual coaching principlesWhen meeting with your team members to provide feedback it is

important to prepare the coaching session in advance to ensure

you achieve a balance between positive and developmental

feedback. Following are some guidelines to optimise a coaching

session:

1. Think about the person you are meeting with.

2. Think about the area you wish to address. Be specific about the

details in terms of either the positive behaviour and/or the

behaviour you wish to improve. Ensure you have adequate

support data.

3. Think about balancing the good news and the bad news to

ensure the team member’s self-esteem is protected.

4. What are the benefits of continuing or using the new

behaviour?

5. Think about how the person might react and what type of

questions they might ask.

Use the following checklist to guide you through the coaching

process.

Coaching steps

1. Start with a positive

2. Agree on agenda

3. Get team member’s input:

◆ Skills being handled well



Type of feedback Steps Guidelines

Positive 1. State the specific • Express your praiseachievement spontaneously when you

2. State how the see something going wellachievement affects • Avoid clichés such ascustomer service, the ‘good job’task, group or • Ensure the feedback isorganisation timely

3. Acknowledge the • Give positive feedbackachievement both privately and

publicly• Use positive feedback

with your team manager• Encourage the individual

to acknowledge that theydid a good job

• Be genuine and recognisespecific skills

Developmental 1. State the specific • Always give develop-problem mental feedback privately

2. State how the • Ensure the feedback isproblem affects timelycustomer service, the • Give specific positive feedback,task, group or organisation then target one situation for

3. Request that the developmental feedbackperson solve the • Only give feedback onproblem things of which you have

first-hand knowledge• Only give feedback about

present behaviour, notpast mistakes

• Listen to how the personfeels about thesituation

• Remove barriers tolistening, such asinterruptions, jumping toconclusions, passingjudgement, offeringadvice and attempting tosolve the problemprematurely

• Use ‘I’ statements such as‘I feel, I believe’ rather than’you’ statements such as’you did . . .’

• Support actions taken andfollow up with morefeedback.

Fig. 24. Guidelines to giving feedback.

◆ Skills needing improvement

4. Give your feedback:

◆ Skills being handled well

◆ Skills needing improvement

5. Develop action plan together

6. Confirm actions and checkpoints

You will see in the case studies the tools the managers developed

to coach their teams more effectively in the service delivery

process.

Motivating individualsMotivation is a key factor in delivering top-quality service: a

positive atmosphere and appreciative rewards are needed to

encourage performance. Herzberg’s motivation theory

differentiates between ‘motivators’ and ‘satisfiers’. Motivators are

factors that inspire and motivate team members. Motivators

include:

◆ accomplishment and achievement

◆ feedback

◆ job enrichment and growth

◆ teamwork.

Employees expect satisfiers to be present. If they aren’t, employees

may be dissatisfied with their work environment. However, since

they are expected, the presence of satisfiers does not motivate

employees. Satisfiers include:

◆ proper working conditions

◆ company policy

◆ personal stability

◆ compensation and fringe benefits.

Salary can fit in either category depending on the individual.

Therefore, in order to effectively motivate team members to meet

customer needs, leaders must offer motivators and ensure

satisfiers. Providing service providers with new skills and

knowledge, new challenges and diversity in job assignments will

contribute to keeping motivation levels high.


Exercise Think of ways to develop the individuals on your team so they

can provide better service.

1. Make a chart using the headings shown below.

2. List your team members’ names in the left column.

3. In the next column list the actions on which you want to

provide feedback. Make sure the actions include 50–50

positive and developmental feedback.

4. Plan what you will say to deliver the message to each team

member.

5. Note for yourself which type of feedback you find easier to

give: positive or developmental.

6 List for each person one technique you could use to motivate

them and one satisfier you might be able to provide.

Building the teamAccording to Katzenbach and Smith in their bestseller The

Wisdom of Teams: ‘A team is a small number of people with

complementary skills who are committed to a common purpose,

performance goals, and approach, for which they hold themselves

mutually accountable.’

Teams that have maximised their SCORE when providing

service have been found to contain the following characteristics:

S: Cohesive strategy and direction (see Chapter 3):

◆ A customer service strategy aligned with the company vision

and mission.

◆ Clearly articulated values and ground rules for providing

service.

◆ An understanding of risks and opportunities facing the team in

delivering service.

◆ A clear categorisation of key result areas, particularly in relation

to customer service.


Team member Action on which What to say Ways toto provide motivatefeedback Satisfiers to

provide

C: Clear roles and responsibilities:

◆ Clear definition of team members’ roles and responsibilities.

◆ The team’s responsibility is shared by all members.

◆ Specific and measurable objectives to measure individual

results (see Chapter 7).

O: Open and honest communications:

◆ Respect for individual differences.

◆ An open and non-judgemental communication environment

among team members.

R: Rapid response to change:

◆ A rapid response to the customers’ needs as well as internal

problems (see Chapter 9).

◆ An ability to manage and respond to change in the internal and

external environment.

E: Effective leadership:

◆ A team leader who is able to help service providers achieve the

task, develop individuals and build the team.

Exercise What is your team SCORE in delivering exceptional service?

Step 1 Review the questions in each section and indicate to what

extent, for each category, you are meeting the

prerequisites for a customer-focused team.

1 = very clear/successful 10 = not clear at all/not

successful

Step 2 Ask the rest of the team, individually, to also rate each

characteristic in the same manner.

Step 3 Create an average for the specific elements. Discuss each

one in turn and identify why individuals have rated them

in that way and what could be done to improve each

rating.

Step 4 Discuss any marked differences in rankings. For instance,

if one person rated open, honest communication as a

nine and another as a two, discuss the reasons for the

disparity.

How easy will it be for your team to raise the SCORE in delivering

outstanding customer service?

Rating: 1 = very clear/successful

10 = not clear/not successful



Characteristic Rating

Cohesive Strategy and direction• To what extent is your customer service strategy in

alignment with the corporate vision and mission?• To what extent can everyone in your team repeat your

customer service mantra?• To what extent is your team adhering to its values?

Overall rating in this category

Clear roles and responsibilities• To what extent have you ensured that your team has the

correct skill sets?• To what extent are team members clear about their

individual key result areas?• To what extent are team members’ workloads accurately

reflected in their objectives?Overall rating in this category

Open and honest communication• To what extent do your team members communicate

effectively with each other?• To what extent do your team members communicate

about feelings?• To what extent do your team members try to adapt their

styles when communicating with each other?Overall rating in this category

Rapid response to change• To what extent does your team recognise, define and

analyse potential customer problems?• To what extent does your team generate creative

problem-solving options?• To what extent does the team adapt to external changes?


Effective leadership• How successful are you at ‘running interference’ so that

your team can complete its work and meet customerneeds?

• To what extent are you providing relevant feedback toteam members?

• To what extent are you continually motivating teammembers?


Recognising achievementsThe manager can help to sustain long-term focus and motivation

by instituting and implementing effective reward and recognition

systems.

There is a temptation, when the customer service initiative is

performing well, to leave well alone. Unfortunately delivering

outstanding customer service requires consistent recognition of

individual and group accomplishments.

Too often, organisations and individuals view achievements as

completion of major milestones. Achievements can also consist of

multitudes of moments of truth; small successes that occur every

single day. These achievements and moments of truth can occur

in both the material (getting the work done) and personal

(interacting effectively with the customer) service aspects.

Although we experience many of these positive moments of truth

per day, instead of recognising them and celebrating them we tend

to focus on what has not worked, thereby reducing individual

confidence and lowering motivation levels.

As we discussed earlier in this chapter, in our society we receive

on average six pieces of negative feedback for every one piece of

positive. By recognising and celebrating accomplishments, service

organisations not only build cohesiveness, but also positively build

trust and morale.

In the future keep your eyes open for those positive moments

of truth that you can use to build team spirit and therefore

ultimately improve customer service. Awareness of these

achievements is the first step in being able to celebrate

successes.

Celebrating successCelebrating achievements provides a sense of well-being and

builds morale within the company. Celebrating achievements can

be as simple as having a pub meal, or as sophisticated as

organising an off-site event for team members at an innovative


By providing rewards and recognition to internal service

providers, it is possible to raise excitement and commitment

to a service culture.

location. Ideas for celebrations are listed below. The list is by

no means complete!

◆ team dinner

◆ picnic

◆ barbecue

◆ social events after work

◆ give aways such as sweatshirts, T-shirts, water bottles, etc

◆ awards

◆ certificates

◆ service provider of the month

◆ certificates

◆ complimentary time off

◆ celebrate key milestones with cake, cookies, etc

◆ outdoors experiential event

◆ other team training

◆ off-site events.

Exercise Celebrating achievements:

Step 1 Identify two achievements in delivering outstanding

customer service. They can be smaller moments of truth

or larger project accomplishments.

Step 2 Decide at least two innovative ways you will celebrate each

achievement.

Case studies: Cleanworks: turning managers into leaders

Was the management team made up of leaders or bosses? Cleanworks had the

opportunity to build its management team from scratch. As part of Cleanworks

University, the managers attended a series of skills-building workshops to build

their team leadership and coaching skills. In addition, they were also responsible

for facilitating key subjects.

The curriculum (Figure 25) therefore involved additional training in facilitation

skills and a train-the-trainer process for specific modules. The company believed

this approach would help ensure that managers really were able to ‘walk the talk’

and would become leaders.

Case Study: Kitchen Barn: turning managers into leaders

Was the management team made up of leaders or bosses? The management

team, as we have discussed in Chapter 5, was already acting as leaders in the

customer service initiative by facilitating many of the programmes.



Step in Skills and knowledge Resources suggestedprocess required

Introduction to Knowledge Basics of team performanceteam work ◆ definition of a team ◆ one day

◆ benefits of teams ◆ presented by EM-Power◆ challenges in teams ◆ all management team attends◆ stages in team development ◆ every participant receives a◆ characteristics of high- workbook

performing teams ◆ session is interactive withexercises and groupdiscussions

Becoming a Knowledge Leadershipleader ◆ leader versus manager ◆ two days

◆ team leadership defined ◆ presented by EM-Power◆ coaching model ◆ all managers attend in one

sessionSkills ◆ every participant receives a◆ feedback skills workbook◆ giving developmental ◆ session is interactive with

feedback exercises and group◆ motivation techniques discussions◆ coaching skills ◆ managers define a future◆ setting team direction action plan◆ objective setting◆ performance review

Becoming a Knowledge Facilitation skillsfacilitator ◆ communication process ◆ two days

◆ facilitation versus teaching ◆ presented by EM-Power◆ all managers attend in one

Skills session◆ presentation skills ◆ every participant receives a◆ building group interaction workbook

techniques ◆ every manager makes three◆ dealing with difficult groups videotaped presentations and◆ designing an effective receives feedback

message◆ using visual aids

Train-the- Knowledge Train-the-trainertrainer ◆ programme models ◆ two days

◆ learning points ◆ presented by EM-Power◆ techniques to observe ◆ every participant receives a

leader’s guideSkills ◆ every manager facilitates part◆ facilitation skills of the programme◆ building group interaction ◆ group discussion on learning

techniques points◆ presenting the programmes

Fig. 25. Sample curriculum: turning managers into leaders.

Achieve the objectives: intervening to support customer service

The management team of district managers and regional managers had played

an integral role in setting service objectives and standards for their stores, as

described in Chapter 7. Their role became pivotal in intervening in the technical

data arena so that their teams could provide customer service. The traditional

market of kitchen and housewares had a thorough training manual and plenty of

written documentation to which sales associates could refer. However, selling

furniture required different technical data and more in-depth knowledge of such

things as window coverings, wood, beds, etc. None of this information was

available in a clear, easily understandable format.

The district managers created a proposal, allotted funds and instituted an in-

depth, modular technical training programme that was rolled out to all store

personnel over a six-month period. Some of the material was taught in group

sessions, often by vendors. Much was in self-teach modules, with tests that the

students reviewed with their managers.

The implementation of this programme was an outstanding example of how

managers can intervene, from behind the scenes, to help in the external service

delivery process.

Develop the individuals: feedback, coaching and motivation

The district managers used the feedback and motivation log for each employee. At

weekly conference calls they would discuss one specific success from each district,

associated with the one sales associate responsible, as a way of providing

unconditional, positive, verbal feedback. The group constantly offered awards for

exceptional service, such as free products, single-item focus competitions (SIFs)

and, at the annual conference, a sales associate of the year award would be

presented.

Gary, as the leader of the entire process, walked the talk and was visible in

reinforcing the concepts and providing personalised feedback for exceptional

service.

Build the team: the SCORE assessment

Each district team, and then the team within each store, completed the SCORE

assessment within a four-week time frame. This assessment was then used in

varying ways:

◆ Each district compared the SCORE ratings for each store. Not only did this

provide an indication of the teams that were motivated, but there was a

strong correlation between the team assessment and the perceived

competencies of the store managers by the district manager. Not surprisingly,


the store managers who were perceived as strong by the district manager

normally had strong teams and vice versa. This tended to validate the district

manager’s opinion.

◆ Occasionally, the district manager’s assessment of the store manager was

different from the team’s SCORE. For instance, one of the store managers was

not well respected, but the team rated itself very highly. This gave the district

manager an opportunity to discuss with the team members the reasons for

their ratings. In her research she discovered that the store manager was really

doing a good job: there had been just one conflict with one of the

merchandising managers, which had coloured the store manager’s credibility.

◆ Different districts within the same region also compared their results, with the

same outcome. It provided the regional manager with an additional source of

data about the performance of her regional managers.

◆ As a result, many of the stores initiated a greater focus on strategy, and

planned specific store events to build trust and communication within the

teams.

Case Study: Internet Express: turning managers into leaders

Was the management team made up of leaders or bosses? Many of the

managers in Internet Express were young with no direct management experience.

In such software companies, working at the organisation for more than two years

normally means promotion to a management role! Such is the dynamic nature of

the business.

As a result most of the managers were very technically-oriented, with a limited

understanding of the complexity of managing large teams. In addition, because

of the relative absence of systems and procedures, many of the managers were

spending much of their time fighting fires and reacting, versus focusing on more

proactive management responsibilities.

Arthur recognised this challenge and undertook several approaches to help his

team become leaders:

◆ He asked the training company that had presented the Managing Customer

Perceptions programme to develop and roll out a coaching programme to his

managers.

◆ He consciously went outside the company to recruit some individuals from

other organisations to add more balance to his management team.

◆ He contracted with a consultant in the short-term, to provide some ‘instant-

depth’ in managing a support function. This consultant was able to work

with the existing management team and suggest a range of improvements,

resulting in new ideas, as well as the management team learning at the same

time.


◆ He made some tough decisions in terms of changing the job roles of two

individuals who were struggling with the complexity of managing large

teams. One he managed to reassign as a project manager. The other decided

to move to another start-up where he could make more of an impact.

Achieve the objectives: intervening to support customer service

One of the biggest barriers to delivering outstanding customer service for the

technical support group was the release of products by the engineering group

that appeared to be ‘riddled with bugs’. The management team realised that the

technicians could only do so much on the phone if the quality was seriously

lacking.

Each member of the management team picked one of the product areas, and

made it their priority to build closer working relationships with the development

group responsible for that product, while also formalising service level

agreements (as discussed in Chapter 7). In this way, they not only ensured a

greater access to development engineers to resolve difficult problems, but they

were also able to get a ‘heads-up’ on future issues. The support team could then

institute some sort of proactive fix, such as a patch, a work-around, etc and avoid

some of the customer frustrations.

Develop the individuals: feedback, coaching and motivation

The leadership team established a standard call-monitoring worksheet to ensure

that the skills taught in the programme were reinforced on a regular basis. The

standard was established that all technical support engineers should have one call

a month monitored anonymously (the engineer was not aware that the manager

was listening in). Although this did not sound like a heavy commitment,

managers found that they would have to listen to several calls before they were

able to listen to a call when the rep was able to practice the full range of skills on

the assessment.

Initially the engineers were resistant to the call monitoring because they

believed it implied a criticism of their current performance. When they started to

receive positive feedback and rewards (night on the town for the best call in a

month), they reduced their negativity and began to compete on who could do

best!

In addition, the managers conducted role-plays on a regular basis in staff

meetings so that the team as a whole could continue to share experiences and

provide each other with feedback.


Build the team: the SCORE assessment

When the team completed the SCORE assessment, they discovered that the

customer service strategy was still unclear to many of the team members, despite

the efforts that had been made to communicate it. They therefore initiated a new

communications campaign that included posters, cards, T-shirts and sweatshirts

to spread the word again.

The SCORE assessment also indicated that the leadership team was divided by

conflicts between two functional groups and their managers. Arthur invested in

taking the team off-site where he combined a strategy session with a team-

profiling seminar. The team was profiled using temperament and the Myers

Briggs Type Indicator (described in the book Turning Team Performance Inside

Out). This data provided an objective framework from which to understand the

individual differences among team members, and communication and teamwork

improved as a result. ____________________________________________________

Discussion points1. To what extent are your managers acting as leaders in

implementing a customer service improvement initiative? How

far do they lead rather than direct? How many ‘old-school’

managers are there who prefer telling rather than influencing?

2. To what extent are the mangers establishing customer service

objectives and standards (achieve the objectives)? How

regularly are they reviewing these standards and objectives?

3. What else can you do to help the managers develop as customer

service coaches (develop the individual)? Do they need specific

training in coaching skills? Providing positive feedback?

Practising the service delivery skills themselves?

4. To what extent are the teams responsible for delivering service

to the internal and external customer performing effectively?

Have you conducted the team assessment exercise to evaluate

the team SCORE? What could be done to raise team

cohesiveness, in order to improve service effectiveness?

5. What else could you do to celebrate successes? What type of

reward and recognition systems could you implement to help

to sustain the customer service focus?

SummaryIn this chapter you have learned about the most important steps to turn


your managers into customer service leaders.

◆ You have reviewed the differences between more traditional

managers or bosses and the customer service leader.

◆ You have seen that being a leader involves being able to lead not

just direct, engage the team, have an attitude of ‘we’ not ‘I’, but

at the same time do real work (serve a customer!), get the team

excited and yet still focus on concrete customer service results.

◆ An effective customer service leader is able to achieve the

objectives, develop the individual and build the team.

◆ Achieving the objectives involves the regular setting and

measuring of customer service standards and objectives,

together with intervening behind the scenes to help allow the

team space to meet customer needs.

◆ Developing the individual involves providing a balance of

positive and developmental feedback, through physical, mental,

conditional and unconditional feedback and providing regular

coaching.

◆ Building the team involves assessing the team SCORE and

creating strategies to improve team performance. A

dysfunctional team is far less likely to exceed customer

expectations.

◆ Managers can help to reinforce the customer service culture by

rewarding exemplary performance and celebrating large and

small successes.

◆ The managers are the ‘make or break’ element in delivering

outstanding customer service. All the effort completed in the

earlier chapters will be negated if they do not act as role models

for the customer service philosophy. Successful companies take

active steps to train their managers as customer service leaders

and reinforce that positive behaviour.


s we have seen, delivering outstanding customer service

requires a clear customer service strategy, effective internal

standards and processes, customer-focused people using

competent interpersonal skills, continuous improvement and

managers who lead the initiative. In this summary we will share

some stories of organisations that have implemented these ideas

and have delighted their customers. The same message remains,

however – delighting the customer is an ongoing process. It never

ends.

It is these types of stories that create a reputation in the

marketplace for exceptional service and help to build long-term

viability for business. Below are a few examples of companies that

have built their success on their reputation for customer service.

◆ The department store chain in the US, Nordstrom, is a

premium priced retailer but has grown enormously on the

strength of its customer service stories. Their willingness to

refund money when any customer complains could be

questioned because technically it ‘encourages crooked

customers’. In reality, for the one customer who may take

advantage there are 99 who will tell everyone they know about

the quality of the service they received. One particular story,

about refunding a customer for balding tyres (they don’t sell

tyres) made the front page of the Wall Street Journal: quite a

return on investment for the cost of a set of tyres.

◆ Federal Express gained a reputation for its employees going

above and beyond to meet customer needs. Stories of

employees pulling victims from aeroplane crashes, spending

Deliveringoutstanding

customerservice is

an ongoingprocess

CHAPTER 11

Delighting the Customer

A

Exceeding customer expectations and ‘going the extra mile’

can leave a memorable impression that the customer talks

about time and time again.

off-duty hours tracking down missing addresses, and going

above and beyond to deliver packages have helped Federal

Express create a market niche for itself, even with tough

competition.

◆ The Ritz Carlton hotel chain has created a niche for itself in

meeting business travellers’ needs, by a concentrated focus on

all aspects of service quality.

However, legendary service is not restricted to large chains.

Small companies can also delight the customer. Think of those

situations such as small restaurants where you eat regularly greet

you by name, local copy shops offer advice at no charge to tidy up

a newsletter, your coffee shop makes your coffee for you without

asking what you want. As a customer, receiving exceptional service

is a rewarding experience. Let’s finish with my favourite story of

being delighted as a customer.

Nick’s restaurant in Maui at the Kea Lani Hotel prides itself in

delighting its clientele. One of the examples is when it ‘spikes its

customers’.

Imagine yourself sitting in a restaurant. You are trying to decide

what wine would go best with dinner. You are talking to your

partner debating the various merits of different bottles. The

manager comes to the table to take your order (this alone is

unusual on a Saturday evening). You tell your wine selection to

him – lo and behold, he brings the bottle of wine that you have

selected from behind his back. You have just been spiked!

◆ Such a moment of truth required a series of interconnected

actions:

– A leader committed to exceeding customer requirements.

– A clear strategy on delivering exceptional service.

– A process to listen to individual customers as they discussed

their wine choice.

– People who were committed and rewarded by exceeding

customer expectations.

– Constant review of processes to ensure no stone was left

unturned in delighting the customer.

We have quoted this story to many people as an example of a

small organisation that made a commitment to customer

service and delighted the customer. Wouldn’t you like your

customers to say the same thing about your business?

Delighting the Customer 221

If your answer is yes – the answer is in your hands. Follow the

steps in the book and exceeding your customer expectations

will become one of your company’s differentiators in the

market place. Good luck in this process.


If It Ain’t Broke, BREAK IT, Robert J. Kriegel and Louis Patler,

Warner Books, 1999

Direct From Dell. Michael Dell, Harperbusines, 1999

The Brain Book, Peter Russell, Routledge, 1979

Service America: Doing Business In the New Economy, Warner

Books, 1995

Moments of Truth, Jan Carlzon, HarperCollins, 1989

Getting Past No, William Ury, Bantan Doubleday Dell

Publications, 1993

Getting Results! The Secret of Motivating Yourself and Others,

Michael LeBoeuf, Berkeley Publications Group, 1994

Do What You Are, Paul D. Tieger and Barbara Barron-Tieger, Little

Brown & Co, 1995

What America Does Right: Learning From Companies That Put

People First, Robert H. Waterman, New York, Norton, 1994

The Age of Unreason, Charles Handy, Harvard Business School

Press, 1991

Getting To Yes: Negotiating Agreement Without Giving In, Roger

Fisher, William Ury, Bruce Patton, Penguin, 1991

The Seven Habits of Highly Effective People, Stephen R Covey,

Simon & Schuster, 1989

The Wisdom of Teams, J. Katzenbach & D. K. Smith, New York,

HarperCollins, 1993

Language Within Language: Immediacy, a Channel in Verbal

Communication, Morton Wiener, Albert Mehrabian, Irvington

Publications, 1968

The 5 Pillars of TQM: How to Make Total Quality Management

Work For You, Bill Creech, Plume, 1995

Turning Team Performance Inside-Out, Susan Nash, Davis Black

Publishing, 1999

Games Teams Play, L. Berdaly, McGraw Hill, New York, 1996

Further Reading

Active listening 84, 123–124, 168, 169,

171–173

Aggressive communication, 111

Apologising, 168, 170, 177–179

Artisans, 128, 129, 130, 131, 132

Assertive communication, 111–112

Assessment centres, 23, 193

Behavioural interviewing, 23

BEST technique: managing the

customer interaction, 119–125

Body language, 99, 100, 107–111, 120,

170

British Airways, 4, 24–28, 190

Celebrating successes, 212–21

CLEAR technique, 165, 166, 168–184

Closed questions, 85, 122–123

Coaching, 24, 27, 29, 36, 39, 206

Communication, attitude 101–102

Communication process, 25–26, 40,

96–102

Communication strategy, 54, 57, 60,

63

Communication, styles 111–112

Continuous improvement, 23, 26,

28–29, 36, 165, 187–192

Customer complaints, 165–187

Customer focus teams/task forces, 23,

26, 190

Customer research, 18, 25, 29–32,

38–40, 41

Develop the individual, 203

Empathy, 168, 174–177

Evaluating candidates, 87–88, 92

Focus on results 202

Feedback, 166, 203–205, 207–208, 215,

217

Guardians, 128–129, 130, 131, 132

Hiring the right people, 66–89

Idealists, 129, 131, 132, 133

Internal service, 11–12, 20, 28

Interview evaluation form, 92

Interview process, 76–89, 91

Interview questions, 77–82, 91

Job requirements, 23, 67, 70–73, 89, 92

Job requirement questions, 77–82

Key Result Areas, 51–53, 57, 59, 63, 144

Leadership and Management, 12, 15,

24, 27, 29, 36, 39, 199–218

Loser tapes (see communication

attitude)

Material service, 7–11, 20, 22–23, 24,

33, 34, 35, 36, 40

Mission statement, 44, 47, 55, 57, 58, 61

Index

Moments of Truth, 15–16, 20, 134–139,

141

Motivating individuals, 208–209

Open–ended questions, 84, 121–122

Objectives, 142, 143, 144, 146, 158, 201

Paraphrasing, 85, 125, 169

Performance Measurement, 141,

152–153

Performance review meetings, 191

Personal service, 7–11, 20, 23, 24, 28,

29, 33, 35–36, 40

Probing for specifics, 84, 124–125

Problem managers, 39

Problem resolution, 28–29, 168,

179–192, 187–189, 192–194

Process improvement, 187–192

Project teams, 195

Rapport, 85

Rationals, 129, 130, 132, 133

Reasoning and emotion graph, 170

Recognising achievements, 212

Recovery, 4, 25, 166–168

Recruitment process, 76–86

Re-engineering service delivery, 192,

195–197

Reports, 152, 153

Reward systems, 24

Sample competencies identification

checklist, 90

Sample curriculum customer service

training, 113

Sample curriculum customer technical

training, 115

Sample curriculum: Turning managers

into leaders, 214

Sample questions for hiring, 91

Sample: setting standards, 155–157

Sample training agenda, 117

SCORE, 209–211, 215–16, 218

Sending the message, 103–106

Service cycle, 33–37, 38, 39, 146–147,

154–157

Service delivery process, 23, 24, 26, 28,

29, 36, 141, 187

Service level agreements, 141, 149–154,

157, 161–163, 190–191

Service objectives, 141–145, 158–159

Service providers, 12–13, 17, 36, 167,

173

Service pyramid, 12–13

Service slogan, 47–49, 56, 59, 61

Service standards, 24, 141, 145–148,

154–157, 158, 159, 160–161,

Service strategy, 42–55

Service support, 12–14

Service systems, 148–149

Service values, 49–51, 56, 57, 59, 62

Sourcing candidates, 70, 73–75

Strategic planning pyramid, 42

Submissive communication, 89, 111

SWOT analysis 45–46, 55, 56, 58, 60,

61

Tasks, 142, 144–145

Telephone screening, 76

Temperaments, 128–133

Verbal communication, 99, 100,

103–107

Vision statement, 43–44, 55, 58, 61

Wall to wall training, 10, 26, 57, 114,

116

Winner tapes (see communication

attitude)


deliver outstanding customer service: gain and retain customers and stay ahead of the competition

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